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The streak continues with average 30-year and 15-year fixed-rate mortgages taking yet another dip into record territory this week, according to Freddie Mac’s weekly mortgage market survey.

“With little signs of inflation and the Federal Reserve’s ‘Operation Twist’ keeping U.S. Treasury bond yields in check, fixed mortgage rates are remaining low and helping to stir the housing market,” says Frank Nothaft, Freddie Mac’s chief economist.

According to Freddie Mac, fixed mortgage rates will likely remain at — or near — their all-time lows in the near future. The low rates will fuel “housing demand with a continued pick-up in housing starts, home sales, and even house prices in many markets,” according to Freddie Mac’s July U.S. Economic and Housing Market Outlook.

Here’s a closer look at mortgage rates for the week ending July 19:

• 30-year fixed-rate mortgages: averaged a new record low of 3.53 percent this week, with an average 0.7 point, dropping from last week’s previous record low of 3.56 percent. The 30-year fixed-rate mortgage has averaged below 4 percent for every week this year except for one. A year ago at this time, 30-year rates averaged 4.52 percent.
• 15-year fixed-rate mortgages: averaged a new record low of 2.83 percent this week, with an average 0.6 point, down from last week’s previous all-time low of 2.86 percent. For eight consecutive weeks, 15-year mortgages have been below 3 percent. Last year at this time, 15-year mortgages averaged 3.66 percent.
• 5-year adjustable-rate mortgages: averaged a new record as well this week at 2.69 percent, with an average 0.6 point, dropping from last week’s 2.74 percent average. Last year at this time, 5-year ARMs averaged 3.27 percent.
• 1-year ARMs: averaged 2.69 percent, with an average 0.4 point, holding steady from last week’s average. A year ago, 1-year ARMs averaged 2.97 percent.

Source: Freddie Mac

http://realtormag.realtor.org/daily-news/2012/07/20/mortgage-rates-record-keeps-breaking?om_rid=AACSxz&om_mid=_BQCYKfB8rbjPJV&om_ntype=RMODaily

The home-building industry continues to dig out of its slump as the pace of construction posts big jumps for single-family and multifamily houses. Builders had a level of starts in June not seen since October 2008, the Commerce Department reported Wednesday.

Housing starts in June soared 6.9 percent, reaching a seasonally adjusted annual rate of 760,000 units. Broken down, single-family home construction, which makes up the largest segment of those new housing starts, increased 4.7 percent in June. Multifamily housing starts, considered a volatile segment of the market, jumped 12.8 percent last month.

Housing starts were nearly 24 percent higher in June compared to last year at that time.

“Housing continues to be the one sector of the U.S. economy that is outperforming expectations,” Michael Gapen, an economist at Barclays, told Reuters.

Still, while housing starts posted a big leap in June, new housing permits — a gauge of future building — dropped 3.7 percent in June.

Source: “Housing Starts Are Up, but Building Permits Decline,” Reuters (July 18, 2012)

http://realtormag.realtor.org/daily-news/2012/07/19/new-home-building-highest-level-in-3-years?om_rid=AACSxz&om_mid=_BQCE6nB8raiUwZ&om_ntype=RMODaily

Record-low mortgage rates helped spur more mortgage applications last week, led by a jump in applications for refinancings, according to the Mortgage Bankers Association in its weekly report.

The MBA’s index for mortgage applications — which includes applications for both refinancing and home purchase — rose 16.9 percent for the week ending July 13.

Refinance activity posted its largest jump in seven months, increasing 21.6 percent last week.

On the other hand, loans for home purchases — which serves as a gauge of home sales — decreased slightly by 0.1 percent last week.

Source: “Mortgage Applications Surge on Refinancing,” Reuters (July 18, 2012)

http://realtormag.realtor.org/daily-news/2012/07/18/mortgage-applications-surge-nearly-17-last-week?om_rid=AACSxz&om_mid=_BQBt7sB8rRnOUU&om_ntype=RMODaily