The average rate for a 30 year Freddie Mac loan stayed at 3.55% for the week ending on September 13th as markets speculated on the possibility of further stimulus from the Federal Reserve.
Outside of the 30 year FRM, other short term mortgage rates are tracked by Freddie and they were either lower or stable. A year ago, average weekly rates were as follows: 4.09% for a 30 year loan, 3.3% for a 15 year loan, 2.99% for a five year Treasury hybrid and 2.81% for a one year Treasury ARM.
Rates are staying low, so now is the time to purchase or refinance.
Refinancing options were good enough for the chairman of the Federal Reserve to refinance his mortgage. According to his last disclosure form; Bernanke refinanced a 30-year mortgage with a 4.25 fixed rate in 2011.
"For some people, there's never been a better time to refinance," said Greg McBride, a senior financial analyst. Mortgage rates are near still at all time lows.
With that being said, is it the best time for you to refinance? Before you decide, take a look at your current situation and see if it will be beneficial. Look at your current interest rate. In the past, most mortgage experts suggested refinancing if you can get a rate two points lower than your current rate. But since rates are so low, many experts say it might be financially worth it if you can lower your rate by even half a point. Everyone has different goals. There is no cookie cutter solution.
How soon should you look into refinancing? Chairman Bernanke has already stated that the Federal Reserve vowed to keep rates low into next year. Would it be beneficial for you to look into taking advantage of the low rates right now? Give us a call or use our online calculator and let us help you decide.
We have some positive real estate news from the month of January. Home sales in January 2012 were up 16% compared to last year. There were 594 sales in the Birmingham market. The inventory of homes in January was at the lowest level we have seen in the past seven years.
Wondering about foreclosure numbers? Foreclosure sales in January 2012 represented 38% of all sales with an average sales price of $82,323. The average sales price for non-foreclosure homes in January was $160,354.
The market seems to be moving in the right direction - let's hope it continues this direction.
Daniel DiGuglielmo - NMLS # 267473E-mail: Daniel@DineroAndSense.com100 Century Park South, STE 200Birmingham, AL 35226 Phone: 205-908-3587 Fax: 205-823-5403