Mortgages Rates Stay Steady Despite Housing News

The weekly average rate  borrowers on Zillow were quoted for 30-year fixed mortgages stayed steady this week, moving from 5.23% to 5.25%. Some might have thought that the Homeowner Affordability and Stability Plan President Obama announced last week would’ve impacted rates more significantly.

We’ve heard that the new plan has increased optimism among many homeowners and is causing lots of people to apply for refis. I wonder if this is going to completely back-log the system? Many people were speculating that rates  recently rose  from record lows because there were not enough people to handle all of the applications. Well, now that there are more people applying–if that hypothesis is true– will rates rise again? As of Tuesday afternoon, rates had fallen slightly to 5.17%.

What do you think?

Rate for 15-year fixed mortgages fell from 4.93% to 4.86% and rates for 5-1 ARMs fell from 5.19% to 5.07%.