Mortgage Interest Rate Analysis

Mortgage Interest Rate Analysis
In the​ very beginning of​ the​ month of​ August the​ mortgage interest rates remained quite stable .​
Except a​ few mortgage program interest rates most of​ then remained unchanged to​ what it​ was in​ the​ last week of​ July .​
Interest rates of​ mortgage programs like 10-Year Treasury and 30-Year Treasury were down by 0.06% and 0.04% respectively .​
And the​ interest rate of​ programs like USD LIBOR 6-month and USD LIBOR 1 Year were up by very nominal 0.015% and 0.022% .​
Other than these,​ the​ interest rates of​ 30 year fixed average,​ 15 year fixed average,​ 5/1 ARM average,​ 3/1 ARM average and some other programs remained unchanged.
On the​ third day of​ the​ month most of​ the​ mortgage interest rates fell down by units in​ decimal due to​ change in​ market conditions .​
But the​ interest of​ short-term mortgage loans like USD LIBOR 6-month and 1-year were raised up to​ 5.318% and 5.230%.
During the​ first 15 days of​ the​ month the​ mortgage interest rate fluctuated a​ lot .​
Though the​ average fluctuation rate was very low but it​ kept on​ fluctuating up and down .​
On most of​ the​ occasions the​ short-term loan interests got affected and kept changing everyday.
Analysts believe that the​ decline in​ the​ mortgage industry is​ due to​ the​ higher unemployment in​ the​ recent times .​
Some believe that the​ recent drastic drop in​ mortgage market is​ due to​ the​ tighter lending standards and cooling home prices .​
This fall in​ the​ mortgage interest rate has in​ fact started to​ affect the​ sub-prime lending too.
Due to​ the​ fall in​ mortgage interest rates the​ U.S .​
mortgage applications rose for the​ second straight week .​
Experts believe that the​ recent disturbance in​ the​ mortgage market is​ the​ reason behind the​ rising applications .​
The housing sector and the​ homebuilders market are down and so are the​ financial companies including mortgage companies .​
Last week,​ the​ fall in​ the​ mortgage market spread to​ the​ financial markets with a​ rapid speed and provoked the​ fear that tighter credit will have a​ bigger impact on​ consumers,​ markets and the​ economy.
It has been forecasted that the​ interest rates for the​ 80% of​ homeowners and buyers that qualify for A-paper mortgages will probably remain stable or​ slightly increase in​ the​ near future .​
Those who are with sub-prime credit or​ don't have proper documents to​ prove income,​ may face difficulty in​ getting the​ loans or​ they might be charged with higher interest rates or​ huge down payment.
Mortgage Interest Rate Analysis Mortgage Interest Rate Analysis Reviewed by Henda Yesti on July 02, 2018 Rating: 5

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