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Rate on 30-year mortgage falls to record 3.87 pct.
Yahoo ^ | 2/2/12 | Derek Kravitz - ap

Posted on 02/02/2012 11:59:04 AM PST by NormsRevenge

WASHINGTON (AP) -- The average rate on the 30-year fixed mortgage fell this week to a record low, the ninth time that has happened in the last year. Even with the cheapest rates in history, the housing market remains depressed.

Mortgage buyer Freddie Mac said Thursday that the rate on the 30-year loan dropped to 3.87 percent this week. That below the previous record of 3.88 hit two weeks ago.

The average on the 15-year fixed mortgage fell to 3.14 percent, also a record low. Records for mortgage rates date back to the 1950s.

Mortgage rates tend to track the yield on the 10-year Treasury note, which fell below 1.9 percent this week.

Rates have been low for more than a year, and the average rate on the 30-year loan has hovered near 4 percent for more than three months. Yet few people can afford to buy a home or qualify for a loan. Those who can have already done so.

High unemployment and scant wage gains have made it harder for many people to qualify for loans. Many don't want to sink money into a home that they fear could lose value over the next few years.

Sales of previously occupied homes were dismal last year. New-home sales in 2011 were the worst on records going back half a century.

(Excerpt) Read more at finance.yahoo.com ...


TOPICS: Business/Economy; Culture/Society; Government; News/Current Events
KEYWORDS: 30year; mortgage; rate; record
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wow.

that 15 year is awful tempting (again)

1 posted on 02/02/2012 11:59:09 AM PST by NormsRevenge
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not sure which is a better investment

gold or real estate?

Gold closed at
1,757.10
+10.00
+0.57%


2 posted on 02/02/2012 12:02:23 PM PST by NormsRevenge (Semper Fi ... Godspeed .. Monthly Donor Onboard .. Obama: Epic Fail or Bust!!!)
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To: NormsRevenge

When they drop the rate to 1% for a 10 yr fixed, I’ll bite.


3 posted on 02/02/2012 12:03:24 PM PST by DownInFlames
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To: NormsRevenge

Try refinancing when you own a small business. It’s almost impossible.


4 posted on 02/02/2012 12:04:12 PM PST by RC2
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To: NormsRevenge

Maybe it is time to give up my 2.875% adjustable rate...


5 posted on 02/02/2012 12:10:47 PM PST by Repeal The 17th (We have met the enemy and he is us.)
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To: NormsRevenge

Hmm... I plan on becoming a first-time homeowner in the next few months. Looks like a good time (I hope).


6 posted on 02/02/2012 12:19:30 PM PST by Drew68
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To: Repeal The 17th

depends how soon it leaps or your length of grace before increase, which is not likely to be much at the rate things are going..

The Fed may not touch a rate increase until 2014 at the earliest so an abundance of ‘cheap money’ will be available ,, for a price.

It pays to shop around and do the research.


7 posted on 02/02/2012 12:28:35 PM PST by NormsRevenge (Semper Fi ... Godspeed .. Monthly Donor Onboard .. Obama: Epic Fail or Bust!!!)
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To: NormsRevenge
They can quote any rate they want -- if no one's writing any loans, it's meaningless.

For example, I have two separate mortgages with Wells Fargo on two different properties. You think they'd like to work with me on some refinancing? Not a chance. So I will have one place paid off in five years, after which they get nothing, rather than add another 25 years' worth of interest to their ledgers.

It's nutty.

8 posted on 02/02/2012 12:34:26 PM PST by Joe Brower (Sheep have three speeds: "graze", "stampede" and "cower".)
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The rate could be -100%; good luck securing a loan with a normal credit rating.


9 posted on 02/02/2012 1:05:42 PM PST by RC51
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To: Drew68

I’m in the process of getting my first home now, just got approved for the loan last week at 3.75% with no points (Virginia).

I’m moving to the same neighborhood as a friend who bought a short sale in Dec 2008. His house was a little cheaper and he had a bigger down payment than me, but my monthly payments are less because of how much farther the rates have dropped since then.


10 posted on 02/02/2012 1:07:45 PM PST by samson1097
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To: Joe Brower
It's nutty.

No, it's predictable. If you had the cash, would you offer to loan it as a mortgage at that rate? Especially with the C.R.A. still in effect that would force you to balance every "good" loan with a looser?

I wouldn't

11 posted on 02/02/2012 1:16:12 PM PST by Da Bilge Troll (Defeatism is not a winning strategy!)
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To: RC51

What do you call a normal credit rating?


12 posted on 02/02/2012 1:17:03 PM PST by Bubba Ho-Tep ("More weight!"--Giles Corey)
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To: Bubba Ho-Tep
What do you call a normal credit rating?

One of the lenders I've spoken with says 740 is the "new" normal.

13 posted on 02/02/2012 1:22:18 PM PST by Drew68
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To: NormsRevenge

We’re about to close on a re-fi from a 30 at 5.125% to a 15 at 3.125%. For a couple hundred more a month, we’re knocking years off the loan and getting rid of the balance on the HELOC (all spent on the house) to boot.


14 posted on 02/02/2012 1:28:00 PM PST by Bubba Ho-Tep ("More weight!"--Giles Corey)
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To: Drew68

That sounds about right.


15 posted on 02/02/2012 1:32:50 PM PST by Bubba Ho-Tep ("More weight!"--Giles Corey)
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To: Bubba Ho-Tep

Experian reports the national average credit score is 692 (January 2011).

However in some States the average is lower, For example in Texas it is 670.

Understand that the Credit Rating isn’t a numerical representation signifying your likelihood of paying a loan off. It is a rating used to signify how likely a bank is to make money off loaning you money.

Frequently people who are very good at managing money have poor credit scores. For example did you know paying off your car or home loan in full will result in LOWERING of your score? Yep True.


16 posted on 02/02/2012 1:35:43 PM PST by RC51
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To: Drew68

http://www.creditreport.com/creditscores/creditratings/average-credit-scores.aspx


17 posted on 02/02/2012 1:43:28 PM PST by RC51
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To: RC51

We have no car loans. My truck is long paid-off and my wife’s car is a lease. We have no credit card debt—we have several cards but never use them—haven’t for a couple of years. We put everything on American Express and pay it off every month. Our credit scores range (between the two of us and the three reporting agencies) from 750 to 790.


18 posted on 02/02/2012 1:55:49 PM PST by Bubba Ho-Tep ("More weight!"--Giles Corey)
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To: Bubba Ho-Tep

sounds like a good deal. mortgage and lending institutions and title companies and their families have to eat too.. here’s to the closing. (Drink!)


19 posted on 02/02/2012 2:36:39 PM PST by NormsRevenge (Semper Fi ... Godspeed .. Monthly Donor Onboard .. Obama: Epic Fail or Bust!!!)
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To: NormsRevenge

I tried to refi - except my home value has dropped below the current loan amount and they would only finance what they thought the house was ‘worth’ and I’d have to pull the extra $$ out of my fourth point of contact to close out the loan.


20 posted on 02/02/2012 2:40:07 PM PST by Godzilla (3/7/77)
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