Mortgage Interest Rates Hit New Record Low
Posted on February 4th, 2012
Interest rates on long-term mortgage loans fell to a new all-time record low this week, according to mortgage finance company Freddie Mac, as investors responded to troubling economic news.
The average rate on a 30-year fixed rate loan, excluding points, dropped to 3.87 percent, the lowest rate on record in Freddie Mac’s 40-plus year mortgage survey. Last week, the average rate had jumped to 3.98 percent up from the previous week and former low of 3.88 percent. Rates have averaged under 4 percent now for about three months, marking an historic period of exceptionally low interest rates. Last year at this time, for example, 30-year fixed rate mortgages carried a rate of 4.81 percent, almost a whole percent higher.
The 15-year fixed rate mortgage also found a new low, with the average rate falling to 3.14 percent from 3.24 percent the week before. Last year, the rate was 4.08 percent.
“Most mortgage rates eased to all-time record lows this week as fourth quarter growth in the economy fell short of market projections,” said Freddie Mac vice president and chief economist in a statement. “The Gross Domestic Product rose 2.8 percent in the final three months of 2011, below the market consensus forecast of 3.0 percent, while consumer spending in December was flat.”
He hinted that there may still be signs of a reviving housing market though.
“One bright spot, however, was that fixed residential investment increased for the third consecutive quarter and residential construction spending rebounded in December, rising 0.7 percent.”
Mortgage interest rates are expected to remain near historic lows throughout the year, influenced heavily by the Federal Reserve’s decision to keep its target rate near zero and its commitment to buy mortgage-backed bonds to keep rates from rising.
The question remains whether consumers will be able to take advantage of these rates, with tightened lending standards in place and with the continued uncertainty of the job market.
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What You Need To Know About Commercial Real Estate And Other Investment Options
Posted on February 3rd, 2012
Your first option could be the commercial real estate which is considered relatively secure compared to other forms. However, it requires a substantial amount to begin with unlike having selling Denver Colorado short sales. It is relatively secure and stable because most business owners prefer to stay in one location on long term basis. For some real estate investors who have already built a sizable portfolio and who have plenty of money to risk, money is not a big issue on this type of investment.
If you don’t want to own a business property then you can become a landlord. Another investment option is ‘Residential rental properties’ which are long-term type of real estate investment. It works for some because it can promise a comfortable retirement especially for those cautious real estate investors.
The lease or rent to own properties just like the houses for rent Logan Utah is also one good option to consider. This type of investment, and investor can help a family who is can’t afford to own a home. In this type, the investor can receive rent payments higher than the usual amount, but will eventually sell the property in the long run. But in the case that the purchase wasn’t complete, you can have it rented again. You will also have no worries with the repair and maintenance because the tenant or the family will have to do these all for you.
How you start, what you have, and your strategies will determine your success rate in this business. Take your time before you plunge in and when you are already ready, it is wise to use several options to spread the risk because real estate market is so unpredictable.
An investor can choose from a variety of investment options like rental, or flipping Brentwood TN homes. Although each type of real estate option bears different risks, there are a lot of people who has made a fortune on this. And when it comes to choosing the ‘good’ one, an investor must consider different factors.
This type of investment may not be for everyone because of the risk involve so anyone who is planning to venture into this business should and must have stable ways, strategy and enough knowledge in bringing in money for a diverse portfolio, which offers a financially secure future.
Tags: commercial property, commercial real estate mortgage, mortgage
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