Ringing in the New Year with Lower Interest Rates?

Reported by Debra Douglas

The Sacramento Business Journal published an article on January 7, 2011 that we thought we should share. I have been hearing reports that rates are up, rates are down…
Freddie Mac reported that interest rates moved higher the last week or 2010, but dropped sharply during the first week or 2011. As of January 6, the average 30-year fixed rate mortgage is 4.77% and a 15-year fixed-rate averages 4.13%. However, the long-term mortgage rates have increased.

The Mortgage Bankers Association reported a slight increase in mortgage applications last week. What I feel is important to note is that this gain is lead by applications to refinance an EXISTING mortgage. Applications for home purchases actually declined.
According to Zillow.com, in California, 30-year fixed-rate mortgages averaged 4.69 percent, up slightly from the week ending 2010 which was 4.66 percent.
So, my advice is to read or listen carefully to what is being reported!

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