Mortgage rates finally stop rising !!!!

Niicss

After going contineously up for nine weeks, rates didnt rise this week. This upward trend in rates was the longest rising rate streak in almost 18yrs.

People are still not sure what to expect next and even the experts are also keeping quiet over this matter. Hope the rate will wont rise again. The main reason for rates to hold back is the inflation news.

Its been a mixed feeling from industry experts. Some still believe that the rates is still on an upward trend and it will rise again on the other hand few expect it to remain stable till the end of this year.

I personally think that it will be 2-3 more hikes before the end of this year. May be new year bring some stability to it.

Who knows whats next!!!!!

Niicss

Guest

Hi Niicss,

That's a great news given by you. Hope it continues like that for long. Will it be a good time to refinance or should I wait?

Rick

Niicss · Posted: Thu Nov 17, 2005 10:43 am Post subject: RE

You should wait still the end of this month. By that time you will be able to judge the trend.

Niicss

Samantha · Posted: Thu Nov 17, 2005 11:48 am Post subject:

Hi Niicss,

That's wonderful news for all of us. But we should keep our fingers crossed and wait for some time more to find out if this stability in rates continue.

Anyways, at least after nine long weeks it is a positive sign and may benefit all involved. You have indeed done a great job by highlighting the news.

God bless you.

Thanks,
Samantha

Caron · Posted: Mon Nov 28, 2005 9:17 pm Post subject: Mortgage rates finally decline

The 30 year fixed rate mortgages fell for the first time since the month of August. Throughout the past 11 weeks, they have either increased or remained almost unchanged. The prevailing economic scenario and a slowdown in housing rates are the possible reasons behind the fall in rates.

The 30 year fixed rate mortgages reduced 10 basis points to 6.32% (1 basis point = 1 percentage point). Unlike the 30 year mortgages, 15 year fixed rate mortgages reduced by 11 basis points to 5.88%. The 5/1 adjustable rate mortgages fell 8 basis points to 5.85%. The mortgages this week had a total of 0.35 points including both discount and origination points.

Since the disaster caused by the Katrina, interest rates and costs have been rising making homes less affordable as a result of which the housing market have experienced a downfall. Since the past 2 months, the housing market has slowed down to 2.01 million from 2.13 million, that is, it has experienced a reduction of 2.3%. Experts believe that lower oil prices have alleviated the possibility of inflation in the market. This has further helped in the reduction of interest rates since the last week.

Although the rates have reduced, the last week's refinance index fell down 6.9%. This indicates that more and more borrowers have refinanced when rates have increased from 6.24% to 6.42% than when rates have reduced significantly. However, the fall in rates will be helpful to borrowers who could not lock in their rates in the previous month due to the prevailing high rates. Such borrowers having fixed rate mortgages can at least lock in at comparatively lower rates. This will prevent them from making higher interest payments even if rates increase further in future.

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