Mortgage Rates Stable as National Home Prices are Up 3.6 Percent in Case-Shiller Index
S&P/Case-Shiller Home Price Index shows home prices rose for the sixth consecutive month. and nationally home prices increased 3.6 percent for the third quarter of 2012 versus the third quarter of 2011.
The Case-Shiller national composite index was also up 2.2 percent versus the second quarter of 2012. David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices had the following comments about this month's report.
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September 2012, the 10- and 20-City Composites showed annual returns of +2.1% and +3.0%. Average home prices in the 10- and 20-City Composites were each up by 0.3% in September versus August 2012. Seventeen of the 20 MSAs and both Composites posted better annual returns in September versus August 2012; Detroit and Washington D.C. recorded a slight deceleration in their annual rates, and New York saw no change.
The Federal Reserve's efforts to drive mortgage rates lower to help the housing market is finally helping as mortgage rates on both conforming and jumbo loans continue to make new record lows. Current mortgage rates on 30 year fixed conforming loans which are averaging 3.43 percent will make new record lows before the end of 2012.
30 year mortgage refinance rates will probably fall as low as 3.25 percent this year and even lower next year. Another factor that force mortgage rates lower is the fiscal cliff. If Congress and the President can't come to agreements on the tax increases and the mandatory spending cuts also known as “sequestration" bond yields will fall to record lows which will also drive mortgage interest rates lower.
You can already find lenders quoting fixed 30 year conventional mortgage refinance rates below 3.25 percent. Currently, on our 30 year rate table in the state of Florida we have Amerisave quoting conforming 30 year refinance rates at 2.87 percent with 1.947 mortgage points. On our 30 year rate list for Texas we also have Amerisave quoting 30 year rates at 2.875 percent with 1.857 points.
Today's mortgage rates on 15 year conforming mortgages are averaging 2.85 percent, down from yesterday's average 15 year mortgage rate of 2.87 percent. Right now on lenders on our rate table for California are quoting 15 year refi rates well under the average rate. The lowest rate is at 2.25 percent with zero points from AmericanInterbanc.com
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