Mortgage rates
Hi,
One of the many items that affect the real estate market is interest rates. Here is where they are at this point.
Mortgage rates changed little this past week although rates on 30-year, fixed-rate mortgages inched down to 6.21%, the lowest since late October. Mortgage giant Freddie Mac reported Thursday that 30-year rates fell the week ending Jan. 6 last week's average rate of 6.22%.
Frank Nothaft, Freddie Mac's chief economist said that "Interest rates for 30-year fixed-rate mortgages currently are below the monthly averages set in November and December of 2005".
Rates on 15-year, fixed-rate mortgages, a popular choice for refinancing a home mortgage, were unchanged, averaging 5.76%. One-year adjustable rate mortgages edged up to 5.16%, compared with 5.15% last week. Rates on five-year hybrid adjustable rate mortgages averaged 5.78%, down a notch from 5.79%.
The Department of Housing and Urban Development also recently announced new FHA loan limits, making it easier for many people to get a loan. The maximum loan amount in both Maricopa and Pinal counties is $254,600.
What does this all mean to the market? Well, even though rates are higher than they were over much of the market frenzy, they are still well below the averages that we have seen over the past decade.
Many analysts see the slow down providing a more normal 6 to 10% appreciation over the next year. A far cry from the 55% range appreciation we saw in 2005, but not a backwards flow.
Have a great week!
Adam Tarr and Sharon Kotula
Your Phoenix Area Real Estate Source
ReMax Excalibur
Scottsdale, AZ
www.weareazrealestate.com