Mortgage Rates Barely Move This Week

Mortgage rates were mostly in a holding pattern this week, which may have been welcome news to borrowers after last week’s uptick.

“The 10-year Treasury yield remained relatively flat this week, as did the 30-year mortgage rate, which fell 1 basis point to 4.02 percent,” says Sean Becketti, Freddie Mac’s chief economist. “Markets have been erring on the side of caution following a weak advance estimate for first-quarter GDP and the FOMC’s broadly expected decision to leave rates unchanged.”

Freddie Mac reports the following national averages with mortgage rates for the week ending May 4:

30-year fixed-rate mortgages averaged 4.02 percent, with an average 0.5 point, falling slightly from last week’s 4.03 percent average. Last year at this time, 30-year rates averaged 3.61 percent.
15-year fixed-rate mortgages averaged 3.27 percent, with an average 0.5 point, the same average as last week. A year ago, 15-year rates averaged 2.86 percent.
5-year hybrid adjustable-rate mortgages averaged 3.13 percent, with an average 0.5 point, rising from last week’s 3.12 percent average. A year ago, 5-year ARMs averaged 2.80 percent

Comments

Post a Comment

Popular posts from this blog

Why Are So Many Trees Dying in Colorado?

Image
On a recent trip on I-70 to evaluate some land for a client, I was confronted with sad but beautiful image of red forests stretching for miles across the hills. The image of a red "evergreen" contrasting against the green scenery is mesmerizing at first until you take a closer look at red death destroying millions of trees in Colorado. Beetle epidemics across the western United States are becoming more obvious every season with entire landscapes turning red and brown as trees die. In northwest Colorado the beetle epidemics, triggered by extended drought in aging forests, are intensifying at an alarming rate, and there is little that can be done to stop them. Actions can be taken to protect high value areas such as ski areas, developed campgrounds and trees in people’s yards. Hastening Death: Pine beetles carry a fungus on their body and legs. Once they enter the tree, the fungus multiplies and spreads. This blue stain fungus blocks the transport of water up the tree’s trunk
Read more

Fed Votes to Raise Key Interest Rate Again

Image
On Wednesday, the Federal Reserve took a largely expected move to raise its key interest rate one-quarter percentage point. This marks the second of three hikes that is expected to occur this year. While mortgage rates aren’t directly tied to the Fed’s key interest rate, rates are still influenced by the movement. Mortgage rates are predicted to start rising, and many homeowners and prospective homeowners are already bracing for an uptick. In a recent survey of home buyers and owners by Berkshire Hathaway, 55 percent of millennials reported discouragement about buying a home due to rising rates. Some 68 percent feel pressured to buy a home before rates increase further. The latest rate hike is partly justified from ongoing economic expansion and also a steadily falling unemployment rate, however, the Federal Reserve should be mindful of the lower than expected rate of inflation and the consequent low interest rates on long-dated bonds, like 10-year Treasury and 30-year mortgage
Read more

Green Homes in Colorado: Saving Rain Water

Image
Colorado’s hot, dry summer’s weather may mean another round of water shortages. With water restrictions in place, keeping your family’s backyard flower and vegetable gardens moist and viable could be a serious challenge. Consider purchasing a rain barrel. These heavy-duty plastic or wood barrels catch rainwater and store it until you need it. A rain barrel allows for the practical reuse of water that otherwise would run down your driveway into a street drain, form puddles in your yard or feed into area streams. Reusing rainwater doesn’t just help the environment; it can lower your water bill and teach your kids about the importance of water preservation. The federal Environmental Protection Agency estimates that lawn and garden watering comprise nearly 40 percent of household water use during the summer, and that a rain barrel can save most homeowners about 1,300 gallons of water during peak summer months. Because it’s naturally soft and doesn’t contain minerals, chlorine, fluoride or
Read more

How much you would need to afford rent in Colorado?

Image
There is nowhere in this country where someone working a full-time minimum wage job could afford to rent a two-bedroom apartment. Downsizing to a one-bedroom will only get you so far on minimum wage. Such housing is affordable in only 12 counties located in Arizona, Oregon and Washington states, according to the report by the National Low Income Housing Coalition. You would have to earn $17.14 an hour, on average, to be able to afford a modest one-bedroom apartment without having to spend more than 30 percent of your income on housing, a common budgeting standard. Make that $21.21 for a two-bedroom home -- nearly three times the federal minimum wage of $7.25. The minimum hourly wage required to afford rent on a two-bedroom apartment, of course, depends on where you live -- ranging from a low of $11.46 in some counties in Georgia to a high of $58.04 in the San Francisco Bay Area. The most expensive state for housing is Hawaii, where workers would need to make $35.20 an hour to afford
Read more