Rates Dip Again this Week

Mortgage rates dropped for a second straight week, reflecting the impact the weakening economy is having on financial markets. Freddie Mac, the mortgage giant, reported Thursday that rates on 30-year, fixed-rate mortgages averaged 6.14 percent this week, down from 6.20 percent last week.

It marked a sharp decline since rates hit a high of 6.46 percent two weeks ago. Analysts attributed the back-to-back decreases to financial markets growing more confident that the Federal Reserve will cut rates again at its final meeting of the year in December in an effort to combat a severe slowdown many economists fear could deepen into a prolonged recession.

“Long-term mortgage rates fell slightly this week as signs the overall economy is weakening brought interest rates down market-wide,” said Frank Nothaft, chief economist for Freddie Mac.

Thirty-year mortgage rates hit a high for the year of 6.63 percent in late July and then dropped below to a seven-month low of 5.78 percent for the week ending Sept. 18.

October Statistics

Sales of single family homes rose just over 8% in October compared with September and while the chart trends upward as sales increase from early in the year, sales so far this year are about equal with last. This is actually surprising since it seems a much more active year for sales but perhaps that’s a factor of fewer Realtors in the marketplace.
Prices provide a more consistent downward trend of 16.8% year-to-date and a 36% decrease from peak prices in 2006 (according to the Case-Shiller Value Analysis).

Mortgage Rates Down this Week

Mortgage rates dropped this week, providing a dose of welcome news to prospective homebuyers.Freddie Mac, the mortgage giant, reported Thursday that rates on 30-year, fixed-rate mortgages averaged 6.20 percent for the week ending Nov. 6. That was down sharply from 6.46 percent last week.

The retreat in mortgages rates comes as the economy is getting weaker.“Mortgage rates fell this week amid new indications of a pullback in consumer spending and a weaker jobs market,” said Frank Nothaft, Freddie Mac’s chief economist.

Those factors are reducing investors’ concerns about inflation, which is helping to pull down mortgage rates. Thirty-year mortgage rates hit a high for the year of 6.63 percent in late July, and then dropped to a seven-month low of 5.78 percent for the week ending Sept. 18.

Sharp Rise in Rates this Week

Rates on 30-year mortgages spiked this week as the tumult in financial markets continued to be felt in housing finance.

Mortgage giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages averaged 6.46 percent this week, up from 6.04 percent last week. The sharp increase pushed 30-year rates to the highest level since the week of Oct. 16.