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Mortgage Rates Hit A Record Low!
By ALAN ZIBEL
updated 8/12/2010 12:02:22 PM ET
Share Print Font: + – U.S. mortgage rates sank to the lowest level in decades this week, pushed down by the weak economy and the Federal Reserve’s move to help lift the recovery by purchasing government debt.
Mortgage buyer Freddie Mac says the average rate for 30-year fixed loans this week was 4.44 percent, down from 4.49 percent last week. That’s the lowest since Freddie Mac began tracking rates in 1971.
The average rate on the 15-year fixed loan dropped to 3.92 percent, down from 3.95 percent last week and the lowest on record.
Rates have fallen since spring and the government’s July jobs report has investors worried about the United States slipping back into recession. They are shifting more money into the safety of Treasury bonds, lowering their yields. Mortgage rates tend to track those yields.
And the Federal Reserve is pushing those yields down even further. The central bank said Tuesday it would buy Treasurys to help aid the recovery, using the proceeds from debt and mortgage-backed securities it bought from Fannie Mae and Freddie Mac.
That move alone will not be enough to push average rates down to 4 percent, said Bob Walters, chief economist at Quicken Loans. But rates that low are still a possibility if the economic outlook worsens even further. If investors became convinced that a renewed recession is likely, they would move even more money away from stocks and into bonds and mortgage debt. That would send rates down further.
“The silver lining to a bad economy is that interest rates fall,” Walters said. “If you can lower your debt burden by refinancing, that’s great.”
Low rates have failed to spark home sales, which have plummeted this summer as the economy remains weak and credit standards stay tight. Applications to refinance home loans have grown but remain well short of a massive refinancing boom.
Overall home loan applications rose only 0.6 percent last week from a week earlier, the Mortgage Bankers Association said Wednesday.
To calculate the national average, Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day.
Related: Low mortgage rates fail to move housing market
Rates on five-year adjustable-rate mortgages averaged 3.56 percent, down from 3.63 percent a week earlier. Rates on one-year adjustable-rate mortgages fell to an average of 3.53 percent from 3.55 percent.
The rates do not include add-on fees known as points. One point is equal to 1 percent of the total loan amount. The nationwide fee for loans in Freddie Mac’s survey averaged 0.7 a point for all loans except for 15-year mortgages, which averaged 0.6 of a point.
Tax Free This Weekend! Just In Time For Back To School Shopping!!
Published: Thursday, Aug. 05, 2010 / Updated: Wednesday, Aug. 04, 2010 06:36 PM
Is the tax-free weekend really a true benefit?
Jennifer Panther
Most of us are getting ready to send our children back to school, and many of us have put off the dreaded “back-to-school” shopping until now. Whether our children are going to college or to kindergarten, there is always a list of items needed that seems to put a hole in our wallets. Back-to-school shopping frustrates most of us as it becomes more and more expensive every year. With the change in the current economy, you would think there would be a discount provided for education. Well, there is. S.C.’s Sales Tax Holiday is this Friday through Sunday. Does the tax-free weekend truly provide a savings that we benefit from? Absolutely. Money we would have spent on taxes now will stay in our pockets. This famous weekend excites many people in South Carolina as they know there will be a considerable savings on a lot of different and much needed items. Many states do not participate in a tax-free weekend or only let the savings apply to a very minimal list of items. So what is included? Here is just a small list of items that are exempt from sales tax: Clothing, school supplies, computers and printers. If you do not have children in school, you still can use this tax-free weekend for household items such as bath towels and bed comforters. Baby items such as diapers, clothes, bibs and shoes also are included. For a complete list of all items you can purchase tax-free, go to sctax.org. When you think of 7 percent saving on an individual item, it might not look like much. But look at the savings on your overall purchase. For example, if you were to spend $250 on clothing, you would save $17.50, which could go to other items you need such as paper, pencils and notebooks. Before you head out to the stores, make sure you do a few things so you don’t overspend:
First, clean out your kids’ closets. Take inventory of what you will need to buy. Donate items that no longer fit. Keep the receipt for the donations and use it as a tax deduction.
Next, make a list of the “must-have” items for clothing and school supplies. Determine what your budget will be so that you have some cost control in the stores. You don’t want to be swept away with impulse buying.
Last, look in the paper for sales on items you need before you shop. You also can check the websites for the stores you plan to visit to see if they have any coupons available.
Get your family off to the right start this school year by saving money.
Read more: http://www.heraldonline.com/2010/08/05/2360358/is-the-tax-free-weekend-really.html#ixzz0vkLhxWnS
Happy 4th of July! Enjoy some salad recipes!
http://www.chisagocountypress.com/main.asp?SectionID=1&SubSectionID=1&ArticleID=12836
6 Reasons To Use A Realtor To Sell Your Home
http://www.heraldonline.com/2010/06/17/2248557/selling-your-home-6-reasons-to.html
Staging Tips
http://realtytimes.com/rtpages/20100604_staging.htm
