April 2014 Closes and Welcomes May 2014 with a Drop in Fixed Mortgage Rates. Fixed Mortgage Rates exhibited a hike followed by a plunge to end the month even lower in the beginning of May, doing the exact opposite of what mortgage experts had predicted.
FOR IMMEDIATE RELEASE
Contact: Brittany Williams
Broadview Mortgage – Katella Branch
Orange, CA – May 5th, 2014 – California’s 30-year fixed mortgage rates remain stable at 4.08%, further proving plenty of economists wrong. After the Federal Reserve announced its plans to cut back on it’s $85 billion per month stimulus program by $10 billion every month commencing in January 2014, economists predicted a nationwide hike in interest rates as interest rates would no longer be kept ‘artificially low’ by the Fed’s program. However, factors such as high unemployment, low gross domestic product, fears of inflation, and a lethargic start to the busiest season of home buying have kept interest rates low.
The lowest mortgage rate in the United States today is 3.98% in Mississippi, and the highest rate of 4.12% in Michigan, Missouri, Montana, and Wyoming. Zillow today reports, “California mortgage rates today are 1 basis point higher than the national average rate of 4.07%,” and “down 3 basis points from last weeks average California rate of 4.11%” (May 5th, 2014, http://www.zillow.com/mortgage-rates/). Zillow’s mortgage rates are based on the high volume of custom mortgage quotes sent daily to borrowers through their website. National pending home sales were also up in March 2014.
Click to enlarge image
Mortgage rates have risen almost a full percentage point since last year as depicted by the graph above. While rates may seem high in relation to that of the past two years, fixed mortgage interest rates are actually at historic lows in comparison to the past 10, 20, even 30 years. See below:
Last week, as of April 30th, 2014, the national mortgage fixed rate on a 30 year mortgage term fell to 4.14% down from the previous week’s rate of 4.19% as of April 22nd, 2014. The leap was a total of five basis points down from the prior week, and they hovered there for the remainder of the week. Zillow also reported that the rate for a 15 year fixed mortgage rate as 3.15% and the rate for a 5-1 adjustable rate mortgage (ARM) as 2.81% (The Wall Street Journal, April 29th, 2014, http://online.wsj.com/article/PR-CO-20140429-915541.html).
Broadview Mortgage values the opportunity to educate consumers to understand which direction that their current or future mortgage is taking them in. If you have any questions about the information herein, feel free to reach out to the Author, Brittany Williams, at Brittany.firstname.lastname@example.org . If you would like a quick pre-approval click here, and for assistance with down payment or buyer assistance, click here. You are also always free to give us a call toll free at (855) 692-7623.
Since 1988, Broadview Mortgage has distinguished itself through honest business relationships with clients, loyalty to employees, and commitment to empowering and educating those communities. Broadview Mortgage is a mortgage banker and direct lender made up of loan officers with years of experience in the firm and sheer excellence in customer service. The firm works to explore several financial solutions from which it’s clients may choose. Business is initiated and conducted on a word-of-mouth basis. Broadview Mortgage is a delegated underwriter for the Federal Housing Administration (FHA), the Veterans Administration (VA), and the Federal National Mortgage Association (FNMA). Broadview is also approved to participate in several state, county and city programs for First Time Home Buyers.
# # #