Expecting overall mortgage originations to fall about $400 billion next year, the Mortgage Bankers Association hopes for a 30 percent rebound in mortgages originated for home purchases next year, according to its economic forecast released Tuesday.
Total existing home sales for 2010 will be around 8 percent lower than in 2009, despite a boost to sales in the first half from the homebuyer tax credit program. Existing home sales are projected to increase modestly in 2011, increasing by a little less than 2 percent, before increasing by about 16 percent in 2012, MBA said. Real Estate Economy Watch
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Mortgage rates reached another modern-day low, and homeowners took advantage by refinancing.
The benchmark 30-year fixed-rate mortgage fell 6 basis points this week, to 4.53 percent, according to the Bankrate.com national survey of large lenders. A basis point is one-hundredth of 1 percentage point. The mortgages in this week’s survey had an average total of 0.42 discount and origination points. One year ago, the mortgage index was 5.41 percent; four weeks ago, it was 4.66 percent.
This is the lowest that the 30-year fixed has been in the 25-year history of this weekly survey. The previous record was 4.57 percent, set Aug. 11. Mortgage rates haven’t been this low in more than half a century. Rates on FHA-insured mortgages averaged 4.56 percent in February 1955, according to the National Bureau of Economic Research. Conventional mortgage rates probably were similar, although records are sketchy.
When factoring the low cost of money with the very affordable Ann Arbor Home Prices, now may be the best time to purchase a home. For your personalized mortgage loan quote please contact Rick Richter EVP of Gold Star Financial at 800-201-LOAN.
30 year fixed rate mortgages hit a new low
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