Mortgage rates come down in some markets

Both the number of new mortgage applications and the mortgage rates fell this week.

According to Freddie Mac’s, this is the weekly survey report on lenders with information on rates for home loans.

30-year fixed-rate mortgages had a rate of 3.61% with an average 0.6 points for the week that ended on May 5, 2016. One year ago, the rate stood at 3.8%.

On the other hand, rates for 15-year fixed rates stood at 2.86% with a 0.5 point. A year earlier, the rates were priced at 3.02%.

Also, 5-year adjustable-rate mortgages had their rates at 2.80% with an average 0.5 point. One year ago it was 2.9%.

The primary reason behind Federal rate cuts was a stream of bad news that lowered Treasury yields.

It is to be noted that new applications for mortgages fell 3.4% for the week ending April 29, 2016.

Home purchase applications shot up 13% higher than they were a year ago.

The hottest real estate markets have left home buyers scuttling with fewer and fewer options that are prohibitively expensive. Some signs indicate that East and West coast markets may be coming down from their highs and according to reports from Trulia.

Research in this arena indicates that 67% of homes remain on the market after 30 days which is not much of a far cry from 67.8% in 2015.

Other areas, however, report that houses are moving slower than they were a year ago.

From April 2015 to 2016 these are the percentages that indicate how many houses remained unsold after 30 days.

Houston, TX — 66.3%

San Francisco, CA — 41.3%

North Port-Sarasota-Bradenton, FL — 72.4%

Madison, WI — 75.2%

Miami, FL — 75.1%

Phoenix, AZ — 65.6%

Cape Coral-Fort Myers, FL — 72.0%

Oakland, CA — 39.8%

Sacramento, CA — 58.7%

Fort Lauderdale, FL — 69.6%

According to data from Trulia San Francisco Bay Area is the number one market for selling homes. It’s a fast paced region compared to cities like Seattle, Denver, Salt Lake City, and Portland, Oregon.

In the south, the top 10 markets where houses are selling faster than a year ago include Charlotte and Raleigh, South Carolina; Louisville, Kentucky; and Atlanta. The median prices in these areas are below $220,000, much lower than San Francisco’s average listings that stand at over a million. There’s no doubt that there are more affordable options out there when it comes to home buying and it is an alternative to people seeking homes away from cities and metros.

Mr.Saver

Mr. Saver is WalletSaver's financial expert. Mr. Saver is the collective creation of the dedicated team and contributors that have worked hard to put together helpful and insightful information for our frequent visitors and users.

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