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Mortgage Rates Remain Near 2013 Lows

Average fixed-rate mortgages are holding near historical lows, but did inch higher this week amid a stronger employment report, Freddie Mac reports in its weekly mortgage market survey.

The economy added 257,000 new jobs in January, following additional increases in December (329,000) and November (423,000).

Despite this week’s uptick in rates, fixed-rate mortgages remain near lows from May 23, 2013, Freddie Mac reports.

Freddie Mac reports the following national averages with mortgage rates for the week ending Feb. 12:

  • 30-year fixed-rate mortgages: averaged 3.69 percent, with an average 0.6 point up from last week’s 3.59 percent average. A year ago, 30-year rates averaged 4.28 percent.
  • 15-year fixed-rate mortgages: averaged 2.99 percent, with an average 0.6 point, rising from last week’s 2.92 percent average. Last year at this time, 15-year rates averaged 3.33 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.97 percent, with an average 0.5 point, up from last week’s 2.82 percent average. A year ago, 5-year ARMs averaged 3.05 percent.
  • 1-year ARMs: averaged 2.42 percent, with an average 0.4 point, also up from last week’s 2.39 percent average. Last year at this time, 1-year ARMs averaged 2.55 percent.

Position Realty
Office: 480-213-5251

Fed to Extend Operation Twist Program

The Federal Reserve announced it will extend its Operation Twist program to the end of the year, pushing down long-term interest rates in another effort to spur home purchases and business investments.

The program, which began last September, was set to expire this month. It involves the Fed buying up long-term Treasuries and selling them as short-term bonds. The Fed said it will transfer another $267 billion over the next six months to longer-term notes to try to push down rates.

“We are prepared to do what is necessary,” Fed Chairman Ben Bernanke said. “We are prepared to provide support for the economy.”

The Fed said even though the Great Recession ended three years ago, the economy and job market will take longer than expected to recover. The Fed said it expected for unemployment to remain around 7.5 percent to 8 percent by the end of 2013.

Position Realty
Office: 480-213-5251
sean.heideman@positionrealty.com

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