McLean, VA – Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), and for yet another week, fixed-rate mortgages reached record lows, while the 5-year adjustable rate remained tied at its low for this survey. (The 30-year fixed-rate survey began in 1971, the 15-year began in 1991, and the 5-year adjustable in 2005.)30-year fixed-rate mortgage (FRM) averaged (so there are lower rates out there!) 4.36 percent with an average 0.7 point for the week ending August 26, 2010, down from last week when it averaged 4.42 percent. Last year at this time, the 30-year FRM averaged 5.14 percent.

According to Amy Crews Cutts, deputy chief economist at Freddie Mac, existing home sales plunged 27 percent in July, while new homes fell 12 percent to a new all-time record low, which led to some market concerns that the housing market may slow the economic recovery. As a result, long-term bond yields fell to the lowest levels since January 2009, allowing fixed mortgage rates to ease to new record lows this week. Much of the slowdown in sales was expected due to the recently expired homebuyer tax programs. For instance, average existing home sales over the first seven months of 2010 were nearly 8 percent higher than over the same period a year ago. “Moreover, house prices still appear to be stabilizing. Nationally, house prices rose 0.9 percent on a seasonally-adjusted basis during the second quarter of this year this year after 11 consecutive quarterly declines, according to the Federal Housing Finance Agency’s purchase only index. Eight of the nine census regions experienced positive gains, compared to none in the first quarter.” said Amy Crews Cutts.

With interest rates this low, it is a great time to purchase a home here in the Tahoe/Truckee market. Feel free to contact me so we can discuss your real estate needs and how I can help you meet those needs. Search all Area Listings, or view REO/Short Sale Listings.

Jamie Schou
Direct – 530-798-1393
jschou@kw.com