The Federal Reserve recently announced it would continue reducing stimulus spending by another $10 billion. Previous predictions estimated that mortgage rates would rise above 5 percent in 2014 as a result of the changing fiscal policy of the central bank.
Following the announcement, mortgage rates dropped to their lowest levels in months. Mortgage News Daily reported that the average interest for a 30-year fixed-rate mortgage fell to 4.375 percent on Jan. 29. During the previous week, interest rates averaged 4.5 percent for most lenders.
Borrowers may see the decline in rates as a positive sign, but compared to a year ago, mortgage rates are significantly higher . During the same time last year, interest for a 30-year fixed-rate home loan averaged 3.67 percent, CNBC reported.
The drop came as somewhat of a surprise, as many anticipated higher rates in 2014. CNBC reported that because mortgage rates have already risen so steeply over the last year, the impact of the Fed's anticipated reduction may have already been absorbed into the mortgage market. According to the Mortgage Broker's Association, mortgage applications have declined over 50 percent from a year ago as a result of higher rates. Fortunately, homebuyers can temporarily look forward to affordable mortgage options in 2014.
Mortgage Lending Real Estate Knowledge Base
Questions about buying or selling your existing home?
TMortgage Loans Colorado Madison WI, Denver CO, St Louis MO | (970) 585-4546 | Mortgage Calculator Options with Loan Quotes. Get Started Now With LF Loans Mortgage! Lock Your Rate - Calculate Payments - Compare Loans - Skip the Bank - Types: FHA Loans, HARP, VA Loans, ARM | Boulder, Ft Collins, Aspen, Pagosa Springs, Colorado Springs, Pueblo, Golden, Grand Junction, Steamboat Springs, Denver CO, Hannibal, Springfield, Troy, O'Fallon, St Louis MO, Chicago, Quincy IL | Home Loans in Armenia WI, Baraboo WI, Beaver Dam WI, Beloit WI, Brooklyn WI, Columbus WI, Deforest WI, Dell Prairie WI, Dodgeville WI, Edgerton WI, Fitchburg WI, Fort Atkinson WI, Germantown WI, Green Bay WI, Green Lake WI, Janesville WI, Lacrosse WI, La Valle WI, Lake Delton WI, Lake Mills WI, Lodi WI, Madison WI, Mauston WI, Mazomanie WI, Merrimac WI, Middleton WI, Milton WI, Milwaukee WI Monroe WI, Montello WI, Mount Horeb WI, Necedah WI, Oregon WI, Platteville WI, Portage WI, Prairie Du Chien WI, Princeton WI, Reedsburg WI, Ripon WI, Rome WI, Spring Green WI, Stoughton WI, Sun Prairie WI, Tomah WI, Verona WI, Watertown WI, Waunakee WI, Windsor WI
Questions about Lendem Financial mortgage loan options? Why you should think about using a mortgage broker vs a bank? Using a Mortgage Loan Officer that has access to all sources of lending institutiuons helps people get the best loan for their situation and offers all options on the market vs the programs at one bank. Call Todd Rubick of Lendem Financial and tell him why the bank said no... If your tax returns do not show your true income, or credit is less than perfect... Full service all source lending strategies will be offered for those that need them.