Cheaper Mortgages for Everyone!

Freddie Mac reported in a weekly survey that the average rate of many different types of mortgages are down a little this week, and further down from rates one year ago. It’s these types of small windfalls that are helping the economy stay afloat. Just to spit out some numbers:

• 30-year fixed-rate averaged 5.14% opposed to 6.35% a year ago
• 15-year fixed-rate averaged 4.54% opposed to 4.58% a year ago
• Five-year Treasury-indexed hybrid ARMs averaged 4.59% opposed to 5.97% a year ago
• One-year Treasury-indexed ARMs averaged 4.62% opposed to 5.15% a year ago

These numbers are backed up by the fact that home sales are on a slow rise again as consumers become more confident in the market. The National Association of Realtors’ pending-home-sales index is up by 12% from July of 2009. Lull in the economy? Yes. Recession? Maybe. Is it permanent? Absolutely not. Things are leveling themselves off in the different markets, time will tell on when we get to the surface.

~By Brandon Fenstermaker~