The federal mortgage interest rate opened at the beginning of the year to a near-record low. Vahe Hayrapetian is excited for this news as it will help to spur loans for housing in the new year.
The federal mortgage interest rate has opened the new year at close to a 40-year record low. The end of the week percentage has been set at 3.34 percent, which is nearly flush with the year-end rate of 3.35 percent last week. The rate was 3.91 percent at the beginning of last year.
Vahe Hayrapetian notes that the near-record rates applied to 30-year mortgages provided by Freddie Mac. The rates for 15-year mortgages were at their lowest in a while as well, coming in at 2.64 percent. This is down from 3.23 percent at the beginning of 2012. News of the lower rates should come as a welcome invite to those who are looking to buy a home at the beginning of the year.
It was reported in November that house sales were up by 15 percent as the market was beginning to see a rebound from a stagnant economy that has lasted for over five years. The fixed rate mortgages are available to those with a solid credit rating and should spur more house purchases in the coming year. This is news that Vahe Hayrapetian likes to hear, as a buyer’s housing market is a good market for issuing loans.
In the same vein, the rate of housing foreclosures has also dropped 23 percent in November. This is the lowest that rate has been in a long time as the housing market collapse during the economic meltdown of 2008 had driven foreclosures through the roof. This is another sign of a repairing housing market with hopes that it can continue into the rest of the economy. As discussions of fiscal cliffs become the hot topic in the federal government, there may be an opportunity to mend the economy as much as possible.
The numbers for December have yet to be released, but they should be available in the next couple weeks with the hope that they are the same as November if not better.
Vahe Hayrapetian is a home mortgage professional with over 15 years of experience under his belt. He likes to see people attain their dream of home ownership, and mortgages at low rates will help them achieve that goal.