While signals from the financial markets are flashing caution signs, the real economy remains on solid ground. The 30-year fixed-rate mortgage averaged 4.07 percent with an average 0.50 point fee for the week ending May 16, 2019, down from last week when it averaged 4.10 percent. A year ago at this time, the 30-year fixed-rate mortgage averaged 4.61 percent.
Investors wary of the current economic situation due to the ongoing trade disputes fell back on the bond market, causing the 10-year treasury yield to decrease. The 30-year fixed-rate mortgage averaged 4.10 percent with an average 0.50 point fee for the week ending May 9, 2019, down from last week when it averaged 4.14 percent. A year ago at this time, the 30-year fixed-rate mortgage averaged 4.55 percent.
Bank of America has committed $5 billion to its affordable home ownership initiative for low to moderate-income and multicultural home buyers and communities across the country. The Bank of America Neighborhood Solutions program focuses on helping put more than 20,000 additional people on the path to affordable and sustainable home ownership. You can get more information by visiting the B of A site here.
Hunting for a house takes time. When you find that special home you want to be prepared. Loan pre-approval could make the difference, especially with multiple offers.
What happens after pre-approval? Don’t open or close any accounts during that time, or take out credit for any other large purchases. Ask how long the pre-approval will be valid. Typically, it’s for 60 – 90 days and can be updated as needed.
Don’t forget lender fees and closing costs. They include origination fees, the cost of writing the loan and prorated items like property taxes.
Shop around for your home loan and interview lenders. Researchers found that a borrower taking out a 30-year fixed rate conventional loan could get rates that vary by more than half a percent. That could translate into saving thousands on your mortgage. Happy house hunting.
The housing market is already reacting to the effects of mortgage rate declines. After declining for six consecutive months, existing home sales finally rose in October and November and are essentially at the same level as during the summer months. The 30-year fixed-rate mortgage averaged 4.62 percent with an average 0.40 point fee for the week ending December 20, 2018, down from last week when it averaged 4.63 percent. A year ago at this time, the 30-year fixed-rate mortgage averaged 3.94 percent.
Mortgage rates have either fallen or remained flat for five consecutive weeks and those seeking mortgages are responding with an uptick in demand given these lower rates. The 30-year fixed-rate mortgage averaged 4.63 percent with an average 0.50 point fee for the week ending December 13, 2018, down from last week when it averaged 4.94 percent. The combination of a low unemployment rate and the recent downdraft in rates should support home sales heading into the early winter months. A year ago at this time, the 30-year fixed-rate mortgage averaged 3.93 percent.