Once again we are seeing record low interest rates! The average rate on 30-year loans dipped to 3.79%. That’s down from 3.83% last week and the lowest since long-term mortgages began in the 1950s. The 15-year mortgage, a popular option for refinancing, declined to 3.04%, down from last week’s previous record of 3.05%. Mortgage rates are lower because they tend to track the yield on 10-year Treasury notes. Slower U.S. job growth and uncertainty about how Europe will resolve its debt crisis have led investors to buy more Treasury notes, which are considered safe investments. As demand for Treasury notes increases, the yield falls.
Planning to use an FHA-backed mortgage for your next home loan? You might want to get your application in gear today because the FHA Mortgage Insurance Premium Increase starts next week.
Beginning next week, the Federal Housing Administration (FHA) is changing the way it charges mortgage insurance to U.S. homeowners. For the fourth time since 2010, FHA mortgage insurance premiums are rising for all FHA-backed homeowners. (more…)