Tuesday, October 15, 2013

Mortgage Rates Steady

Mortgage Rate News - New mortgage rules go into effect the beginning of next year with a view to averting a housing and credit crisis. Reports that came in last week indicated that applications for U.S. home loans rose as demand for refinancing outpaced purchases. But mortgage rates have begun to rise. 

Regarding the housing market stimulus plan that led to the recent housing rebound "The increased funding will provide forward-looking confidence in the mortgage market and enable Fannie Mae and Freddie Mac to carry out ambitious efforts to ensure mortgage affordability for responsible homeowners." That seemed to be gaining fruition until the partial government shut down slowed the lending process. Still the shutdown has steadied mortgage rates.

Lower rates allow homeowners to refinance, which increases their disposable income and helps stimulate economic growth. National average mortgage rates have steadied at around 4.5 percent for a 30-year fixed loan. That's down several basis points compared to 5% levels in 2008. Some lenders are offering closing-cost credits to boost business.

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