Mortgages Rates Stay Steady Despite Housing News
By: Alison Paoli, Zillow PR Specialist | February 24, 2009
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%.
- Stumble it!
- Categories: Mortgages, Refinance
Comments
2 Comments so far
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Janet Giacoma on February 26, 2009 10:17 am
I do not believe rates will go up, just the backlog will grow. They may have to wait 3 to 6 months for the refis to go through. Some of them may not be able to last that long.
Terrence Askew on February 28, 2009 4:51 pm
I do not believe that the amount of application will have anything to do with rates increasing. I believe that it will be based more on the supply and demand for MBS (Mortgage Backed Securities).