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Freddie Mac Provides Economic Outlook

January 19th, 2012 Comments off

Freddie Mac LogoFreddie Mac released today its U.S. Economic and Housing Market Outlook for January this week showing that while the economy is undoubtedly in a better place than the same time a year ago, a speedy recovery still seems unlikely this year. “With the new year comes a sense of cautious optimism,” says Frank Nothaft, Freddie Mac, vice president and chief economist. “There are some positive signs in the job market and consumer confidence; housing is starting to raise hopes for continued gradual economic recovery. But the economy still is giving some mixed messages.” According to the survey economic growth will likely strengthen to about 2.1 percent in the first quarter; the current U.S. unemployment rate of 8.5 percent is likely to increase after seasonal gains are reversed; mortgage rates are projected to remain very low, at least in the beginning of 2012; home sales are expected to grow between two and five percent year-over-year and the housing-market recovery will be delayed as long as there remains a large gap between buyer and seller sentiment. Also this week Freddie Mac announced the 30-year fixed-rate mortgage edged down slightly to 3.88 percent to a new all-time record low marking the seventh consecutive week below 4.00 percent.

(Image Credit: Freddie Mac)

Mortgage Rates Down from One Year Ago

December 31st, 2011 Comments off

MHProNews.com has learned from OriginationNews that according to Freddie Mac, mortgage rates are well below comparable rates from a year ago even though they edged up a little from last week. The average rate for a 30-year fixed rate mortgage (FRM) rose four basis points to 3.95 from last week, but well below the 4.86 percent from a year ago. Similarly, the average 15-year FRM gained three basis points to 3.24 percent from last week, compared to 4.2 percent at the end of last year. The average rate for a Treasury-hybrid adjustable rate mortgage (ARM) for the week ending Dec. 29 was 2.88 percent, as opposed to 3.77 percent a year ago; and the one year Treasury ARM stood at 2.78 percent this week, compared to 3.26 percent at last year’s end.

(Photo credit: totalmortgage)