Weekly Mortgage Rate Yo-yo; Sharply Higher this Week
Mortgage rates shot up this week with 30-year mortgages climbing to the highest level in nearly a year, reflecting concerns in financial markets about the troubles at corporate giants Fannie Mae and Freddie Mac.
Freddie Mac reported Thursday that its nationwide survey showed rates on 30-year mortgages surged to 6.63 percent this week, up sharply from 6.26 percent last week. That represented the highest level for 30-year mortgages since they stood at 6.68 percent the week of Aug. 1.
Other mortgage rates showed similar hefty increases which analysts attributed to financial market jitters over rising mortgage losses at Fannie and Freddie.Analysts said that the rising cost of funds for Fannie and Freddie had an immediate impact on the nationwide average for all mortgage rates since both companies are such big players. Fannie and Freddie either own or guarantee nearly half of the nation's mortgages.

Weekly Mortgage Rate Update: Six-week Low

Mortgage rates fell this week with 30-year mortgage rates dropping to the lowest level in six weeks as investors became less worried that the Federal Reserve would soon tighten credit policy to stall inflation.

Freddie Mac, the mortgage company, reported Thursday that 30-year fixed-rate mortgages averaged 6.26 percent this week.That was down from 6.37 percent last week. It marked only the second weekly decline in the past eight weeks and left the 30-year rate at the lowest point since it averaged 6.09 percent the week of June 5.

Analysts attributed the decline in part to comments made this week by Federal Reserve Chairman Ben Bernanke. He indicated in his mid-year economic report to Congress that the central bank was poised between concerns about rising inflation pressures and the weakening economy.

Many analysts viewed Bernanke’s comments as a signal that the central bank will delay tightening rates to give the fragile economy and banking system time to recover. The Fed is hoping that the sluggish economy will help dampen inflation on its own.“Mortgage rates fell this week amid market speculation that the Federal Reserve may not raise the overnight bank lending rate this year after all,” said Frank Nothaft, chief economist for Freddie Mac.

Other rates dropped as well, according to Freddie Mac’s nationwide survey.Rates on 15-year fixed-rate mortgages, a popular option for refinancing, dipped to 5.78 percent, down from 5.91 percent last week.

Weekly Mortgage Rate Update
I'll let the 'professional' bloggers opine on the tumult in the banking world. In the meantime, prospective home buyers should note that rates on 30-year mortgages edged up this week, while rates on other home loans were a mixed bag.Freddie Mac, the mortgage company, reported Thursday that 30-year fixed-rate mortgages averaged 6.37 percent this week. That was up from 6.35 percent last week.Rates on 15-year fixed-rate mortgages, a popular choice for refinancing, dipped to 5.91 percent this week, compared with 5.92 percent last week.

Short Sales/Foreclosures and Property Taxes
Buyers anticipating property tax assessments based strictly on purchase price of properties purchased as short sales or foreclosures need to take note of the following statement found on the home page of the Broward County Property Appraiser:

If you purchase a property in a foreclosure or short sale, your actual purchase price may not reflect the just (market) value used for determining your taxes. Instead, Florida law requires our office to use the reasonable market price of a sale of similar homes in your neighborhood (or a similar area) sold under normal financial conditions to determine the assessment. Regardless of your 2008 purchase price, assessments in Florida are done a year in arrears. This means your 2008 assessment is based on the sales in your neighborhood (excluding foreclosures, short sales and non-arm's length transactions) between January 2, 2007 and January 1, 2008.

Buyers, concerned about exactly what this "reasonable market price" might be should contact the Property Appraiser's Office (use the link above).