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30 Year Fixed Rate Decline Ended
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May 13, 2005 LOS ANGELES -- Your mom always told you,
"All good things come to an end." We all know it because we grew up hearing it.
Heck, even Michael Jordan had to retire from Basketball at some point, right?
All cliche's aside and getting down to business:
Average 30 year fixed rates for home mortgages took a turn upwards after
consecutively falling for five straight weeks. The upward swing wasn't a
dramatic one, and homeowners and home purchase candidates shouldn't worry.
Indications by economists recently that our economy is experiencing a minute
slowdown likely forced Bond market players to get a bit edgy, thus nudging the
base 30-year rate up, which it should have been doing anyway for the past five
weeks according to Fed promises of "gradual rate increases". So I guess we can
count our blessings that they declined for such a record amount of weeks.
Freddie Mac, the "almighty", so to speak, of the mortgage industry reported
Thursday in its weekly survey that rates for 30-year fixed-rate mortgages
averaged 5.77 percent for the week. That's just a dash of increase when compared
to 5.75 percent the previous week.
The 30-year rate increase marked the first upward swing since March 3. At that
time 30-year fixed mortgage rate averaged 6.04. That also happens to be the
highest rate we have seen so far in 2005. Perhaps the cosmos did us a
counterbalance favor by knocking the big 30 down for five consecutive weeks.
Regarding home purchase loans and originations countrywide, we can report with a
smile on our faces that the slight increase in rates this week didn't seem to
phase prospective buyers. I always said nothing good ever happened in a state of
panic, so I'm proud of people who are in the home shopping market for keeping
their cool and doing business as usual.
News article by Stockton Marquette, Mortgage Industry Analyst.
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