If the economy continues to improve we're likely to see pricing move further away from those record lows
Wilmington, NC (PRWEB) February 26, 2012
Mortgage rate research website, BurlingtonMortgage.biz announced that fixed mortgage pricing advertised on the site has increased above the record setting interest rates seen in recent weeks. On Friday, February 24th, 2012 30 year fixed mortgage rates as low as 3.875% were displayed in the rate tables (APR: 3.910%, Points: 0, Fees: $852, Lender: EverBank.)
Signs of a strengthening economy and housing market could be impacting mortgage rates. For example, The National Association of Realtors reported Wednesday, February 22nd that existing home sales rose 4.3 percent in January, and housing inventory dropped 0.4 percent.
The mortgage rate increase was also noted in the weekly pricing survey from Freddie Mac, a government sponsored enterprise and purchaser of residential mortgage loans on the secondary market, released Thursday, February 23rd. Average pricing for fixed rate loans was up slightly, while adjustable rate products saw a small drop in pricing.
Freddie Mac reported that the average for 30 year fixed rate mortgages was 3.95% (0.8 points), an increase over the 3.87% (0.8) average the week before. Average 15 year fixed pricing was also up though by a smaller margin, to 3.19% (0.8 points) from 3.16% (0.8 points) the previous week. Pricing for 5/1 adjustable rate mortgages fell to an average of 2.80% (0.7 points) from 2.82% (0.8 points), and 1 year ARM rates dropped to 2.73% (0.6 points) from 2.84% (0.6 points) on average.
"Rates are still incredibly low," commented Shaun Hamman, VP of Residential Lending at American Financial Resources, a National mortgage lender, "But when they are on the rise it's a good reminder that they aren't guaranteed to stay this low forever. We're seeing a lot of encouraging news from the housing industry such as fewer mortgage holders having trouble making their payments, and an uptick in the number of homes being sold. If the economy continues to improve we're likely to see pricing move further away from those record lows."
Below is a snapshot of interest rates for a variety of products listed on BurlingtonMortgage.biz on 2/24/2012. Frisco, TX mortgage rates were used in this example. Rates are subject to change. Please visit the site to view the criteria used in the survey.
30 Year Mortgage Rates (0 Points)
Quicken Loans – 4.375% Note Rate – 4.474% APR – $1557 Fees in APR
Roundpoint Mortgage Company - 3.990$ Note Rate - 3.990% ARP - $0 Fees in APR
20 Year Mortgage Rates (0 Points)
AimLoan - 3.500% Note Rate - 3.613% APR - $1995 Fees in APR
EverBank - 3.625% Note Rate - 3.674% APR - $852 Fees in APR
15 Year Mortgage Rates (0 Points)
AmeriSave - 3.000% Note Rate - 3.144% APR - $1995 Fees in APR
QuickenLoans - 3.750% Note Rate - 3.883% APR - $1807 Fees in APR
30 Year FHA Mortgage Rates (0 Points)
EverBank - 3.875% Note Rate - 3.771% APR - $500 Fees in APR
Roundpoint Mortgage Company - 3.625% Note Rate - 3.707% APR - $2000 Fees in APR
BurlingtonMortgage.biz is a website that offers information regarding mortgages and personal finance. BurlingtonMortgage.biz is owned by CMG Equities, LLC based in Wilmington, North Carolina.
Update 2/19/2013: BurlingtonMortgage.biz is now PriceAMortgage.com which is also owned and operated by CMG Equities, LLC in Wilmington, North Carolina.