One of the requirements of receiving a VA loan is that you must have an appraisal performed on the property. What does this mean for you? If you are a first-time homebuyer, or if this is your first VA loan, the idea of getting an appraisal can be daunting. But, if you remind yourself that the appraisal process is there to protect you, the buyer, from paying more than fair-market value for your home, then it actually becomes quite painless.
It would be totally cliché for me to say I’m thankful for today’s record low mortgage rates, wouldn’t it?
I was thinking about rattling off a bunch of things that I’m thankful for, and while I do have plenty in my life to be thankful about, I feel that’s getting overdone.
Maybe overdone like how my mom’s turkey will probably turn out tomorrow?
Regardless of how my Thanksgiving meal is going to be tomorrow, and I’m sure it will be delicious, one thing is for certain: the nationwide average for mortgage rates has never been lower in the history of the modern mortgage according to Freddie Mac’s weekly Primary Mortgage Market Survey.
Let’s take a look at this week’s numbers.
30-year fixed-rate mortgages fell from 3.34% with 0.7 points last week to a new record low of 3.31% with 0.7 points this week. Last year at this time, 30-year fixed-rate mortgages averaged 3.98%, and if you remember correctly, it was only the second time ever that 30-year fixed-rate mortgages averaged less than 4.00%.
15-year fixed-rate mortgages also set a new record low this week by dropping to 2.63% with 0.6 points from last week’s 2.65% with 0.7 points. This is the fifth week in a row that the average for a 15-year fixed-rate mortgage has dropped and is far off from last year’s average of 3.30%.
ARMs more or less remained untouched this week, with 5/1-year ARMs staying flat at 2.74% with 0.6 points, and 1-year ARMs jumping to 2.56% with 0.4 points this week from last week’s 2.55% with 0.3 points.
Last year at this time, 5/1-year ARMs and 1-year ARMs averaged 2.91% and 2.79%, respectively.
Before we get into the weekly quote from Frank Nothaft, vice president and chief economist from Freddie Mac, I really hope he doesn’t go down the Thanksgiving route with a quotation full of turkey puns and pumpkin pie musings.
He explained, “Fixed mortgage rates continued to ease somewhat this week to record lows and should help the ongoing housing recovery. Already, new construction on homes was up 3.6 percent in October to the strongest pace since July 2008. In November, homebuilder confidence rose for the sixth straight month to its highest reading since June 2006 according to the NAHB/Wells Fargo Housing Market Index. And existing home sales increased from 2.1 percent in October to an annualized pace of 4.79 million, exceeding the market consensus forecast.”
And have a Happy Thanksgiving from my family to yours.