Mortgage Rates Hardly Move

Pineaple

Freddie Mac just released it’s weekly Primary Mortgage Market Survey, which shows U.S weekly average mortgage rates as of  November 29, 2018.

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This survey shows how U.S weekly average mortgage rates change during the week of November 22-29, 2018. This survey is released every Thursday ( this time it was on November 22,2018)

For this week, November 29, 2018, survey shows, that 30-year fixed rate mortage did not change since the last week and stayed the same at 4.81 percent since the last week’s survey.

The 30-year fixed rate mortgage increased by 91 points in a year. For the week of November 30, 2017, when rate average was 3.90 percent.

The 15-year fixed-rate mortgage went up by 1 point in one week and now it is at 4.25 percent, when last week was 4.24 percent.

The 15-year fixed rate mortgage for the year increased by 95 points.  It was 3.30 percent on November 30, 2017.

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Since April 1971, Freddie Mac has surveyed the lenders all across the U.S.A weekly in order to get the average 30-year fixed-rate mortgage rate

What Is a Fixed-Rate Mortgage?

What is Fixed-rate mortgage
Downtown Fort Lauderdale, FL

A fixed-rate home mortgage has an interest rate that remains the same for the life of the mortgage.

That means, the monthly pricipal and interest payment will not change during the life of mortgage.

It has one single the same payment every month, what gives stability and predictability to plan for the monthly budget.

Here are some other blog posts that I have written already about the mortgage: what is a mortgage , Fannie Mae loan,and Freddie Mac loan.

Mortgage Rates Go Down for the Second Consecutive Week

Decorative wall
Decorative wall

Freddie Mac just released it’s weekly Primary Mortgage Market Survey. It shows U.S weekly average mortgage rates as of  June 7th, 2018.

Freddie Mac 6_7_2018. Primary Mortgage Market Survey. US weekly mortgage averages
Freddie Mac. Primary Mortgage Market Survey. US weekly mortgage averages as of 6/7/2018

This survey shows how U.S weekly average mortgage rates change during the week.

This week’s, June 7th, 2018, survey shows, that 30-year fixed rate mortage went down by 2 points since the last week’s survey.  Mortgage rates went down to 4.54 percent, since the last week survey when it was 4.56 percent.

The 30-year fixed rate mortgage increased by 65 points in a year. For the week of June 8th 2017, when rate average was 3.89%.

The 15-year fixed-rate mortgage went down by 5 points in one week. It is at 4.01 percent now, when last week was 4.06 percent.

The 15-year fixed rate mortgage for the year increased by 85 points. It was 3.16 percent on June 8th, 2017

 

Freddie Mac. US weekly average mortgage os af 6_7_2018
Freddie Mac. US weekly average mortgage as of 6/7/2018

Since April 1971, Freddie Mac has surveyed lenders across the U.S. weekly to determine the average 30-year fixed-rate mortgage rate

Mortgage Rates Go Up to Highest Level in Seven Years

Exterior wall of an older building in Fort Lauderdale,FL
Exterior wall of an older building in Fort Lauderdale,FL

Freddie Mac released it’s Primary Mortgage Market Survey on May 17th, 2018. It shows U.S weekly average mortage rates.

Freddie Mac 5_17_2018. Primary Mortgage Market Survey
Freddie Mac. Primary Mortgage Market Survey. US weekly average mortgage rates for the last 10 years

For the week ending of  May 17th, 2018, 30-year fixed mortgage rate went up by six (6) points since the last week’s survey, and reached 4.61 percent. This matched the highest level since May 19th,2011. The 30-year fixed mortgage increased by 59 points in one year- when in May 18th, 2017 rate was 4.02%.

For the week ending of May 17th, 2018, 15-year fixed mortgage rate went up by seven (7) points since the last week’s survey, and now  it reached 4.08 percent. 15-year FRM increased by 81 points since the last year when it was 3.27 percent.

 

Freddie Mac 5_17_2018. US weekly avera mortgage rates
Freddie Mac – Primary Mortgage Survey. US weekly average mortgage rates os af 5/17/2018

When the interest rates are higher, the home-buyer has to pay more money when getting a loan.

The buyer gets a smaller house. If there is a set amount of money to be spend a month by a home-buyer, then a buyer has to spend more money for interest. There is less money left a month for an actual loan principal to pay.

What Is an Investment Property?

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Small older house in Hollywoood Lakes neighborhoood in Hollywood, FL

An investment property is purchased with the purpose of gaining a return on investment. It can be any type of real estate, be it a vacant land, an apartment building, a duplex, a single-family home, commercial property. Usually, the property is NOT occupied by the property owner. But sometimes investor buys a few units appartemnt building, live in one apartment and rent the rest. It could be a duplex, when the owner lives in one unit and rents the other unit to a renter.

How Is Profit Generated?

Profits are generated through rental income and/or capital gains.

Property investing involves buying, owning, renting, managing,  and/or selling of real estate for profit.

This type of property is purchased with the goal of  an income by renting the property, buying low and selling high, profiting over time from appreciation, renovating and fixing the property selling it for more than the purchase price.

Improvement of real estate as part of an investment game plan is generally considered to be a sub-specialty of real estate investing called real estate development.

 

Liquidity and Cash Flow

Real estate is an asset with limited liquidity when comparing to other investments.  It is not like cash in the savings acount, not like stocks or shares, when the owner can get cash withdrawal from the saving, or sell the stock and get the money fast. Real estate owner can’t get cash fast, unless sells real estate at discount.

Real estate depends on cash flow. It needs a lot of capital up front , but this capital can be gained with a mortgage. the owner borrows money.

This where the saying is “Make money with others’ people money