Mortgage Rates Unchanged
Positive news has little effect
Rates for the both the 30-year and 15-year fixed-rate mortgages remain virtually unchanged despite good economic news on two fronts
Freddie Mac’s Oct. 2 Primary Mortgage Market Survey showed that the 30-year fixed-rate mortgage stood at 4.19 percent, down just 1 basis point from Sept. 25.
In the first week of October 2013, the 30-year fixed-rate mortgage averaged 4.22 percent. The 15-year fixed-rate mortgage remained unchanged from last week’s 3.36 percent. A year ago at this time, the 15-year fixed-rate mortgage averaged 3.05 percent.
"Mortgage rates were flat to slightly down across the board as the federal government announced that it was revising the Gross Domestic Product (GDP) upwards from 4.2 percent to 4.6 percent for the second quarter," said Freddie Mac’s chief economist Frank Nothaft.
GDP measures the output of goods and services produced by labor at property located in the United States.
In addition Nothaft noted that the S&P/Case-Shiller National House Price Index grew a seasonally adjusted 0.2 percent for July; up 5.6 percent from July 2013.
This index measures residential real estate prices, and tracks changes in the value of residential real estate both nationally as well as in 20 metropolitan regions.
Many in the real estate industry regard this index as the leading measure of residential real estate prices in this country.
Nothaft did see one cloud on the horizon.
"Pending home sales data were less optimistic, though, down 1 percent in August," he said of the nationwide data.
Here in California housing affordibility caused pending homes sales to fall 4.5 percent in August.