For week 8, the Southeast and West Regions offered the best mortgage rates available in the nation. The Southeast Region, which is composed of North Carolina, South Carolina, Virginia, Tennessee, Kentucky, Georgia, Alabama, Florida, Mississippi, and the territory of Puerto Rico, boasted an average flat rate of 4.92%, compared to the national average of 4.95%.
By now, most consumers anticipate that the days of the under-five percent interest rate for a thirty-year mortgage are either fast fading or already passed in most areas of the country. What some consumers may not be aware of is that other factors that have to do with mortgages may also fade out this year. One of those factors is the amount of down payment required to obtain approval for a mortgage.
There are many instances in which a mortgage refinance is a good idea. At times, the goal is to restructure the debt so the monthly payments are more affordable. There are also situations in which the primary goal is to lock in a more competitive interest rate. Regardless of the reasons behind the refinancing, it is important to protect your interests as you choose a lender and commit to a new set of terms and conditions.
With the average flat rate on a thirty-year mortgage at or over five percent the last two weeks, there is some speculation on what will come to pass with the new week. Some analysts are predicting that the extremely modest decline last week will continue, easing the figure back under five percent, at least for a little while. Others are seeing the rate holding at five percent for a time, or possibly increasing slightly for the remainder of the winter season.
For anyone looking to purchase a home, California has a lot to offer. This is especially true in suburban areas of the state, where rates are holding steady in spite of some of the shifts elsewhere in the country. Working with different lenders can help consumers find the right type of mortgage plan and move ahead with the goal of buying a first home or managing a refinance of an existing mortgage.
In some quarters, there is speculation that events in the Middle East may have some impact on the average mortgage rates over the next few weeks. In some cases, the projections are that events will lead to some increases while others are anticipating that rates will remain more or less stable or possibly slip back below the five percent mark for thirty-year mortgages.
According to the Mortgage Bankers Association, mortgage activity is improving on a couple of levels as the month moves forward. For the week ending February 18, an increase of 13.2 percent in activity across the nation was noted, making the week one of the best in some time, in terms of applications for first time mortgages and refinancing.
New laws passed this past year which are due to go into effect soon are taking some of the guesswork out of reading mortgage applications and contracts. The Real Estate Settlement Procedures Act is beginning to have some impact on the verbiage used in mortgage documents, a situation that is providing welcome relief to many would-be homeowners.
Week 8 brought good news for prospective homeowners across the country, as average flat mortgage rates for both fifteen and thirty-year mortgages posted a slight decrease. For the week ending February 24, thirty-year mortgages posted an average flat rate of 4.95%, down from an even 5.00% the week before. Not to be outdone, fifteen-year mortgages also posted a decrease in average flat rates, with the current week clocking in at 4.22%, down from 4.27% in week 7.
Over the last year or so, mortgage brokers have gotten a bad reputation in some quarters. While it is true that there are brokers who have played fast and loose with the interests of their clients, the majority are professionals who want the mortgage deal to be a good fit for the client, even if it means a smaller commission.
Many consumers are concerned about the idea of changes in tax laws that would reduce or even do away with the mortgage deductions on federal tax returns. Homeowners who have enjoyed the deduction for years wonder how much of a difference any changes would make in the amount of taxes they pay each year. Prospective homeowners wonder if the reduction or elimination of the tax is enough to make owning a home less viable.
As the first quarter of 2011 inches closer to a close, there is some speculation about what will happen with mortgage rates during the last segment of this three-month period. Will rates continue the trend of the last two weeks in February, posting slight decreases in the average fixed rates for both fifteen and thirty-year mortgages? Or will the decrease reverse, allowing rates to once again move over the five percent mark before April arrives?