After steadily rising for the month of December, the 30-year fixed-rate mortgage averaged 5.09% for the week ending January 7, down from last week's 5.14% average. The mortgage averaged 5.01% a year ago. Fifteen-year fixed-rate mortgages averaged 4.50%, down from 4.54% last week and 4.62% a year ago.
“Current interest rates for fixed-rate mortgages are just about at their annual average for 2009, while ARM rates are considerably below their averages for last year," said Frank Nothaft, Freddie Mac chief economist, in a news release. ARM rates will rise as the economy strengthens and the Federal Reserve decides to raise its overnight target rate, Nothaft added. "However, the federal funds futures market does not anticipate any Fed action until the second half of 2010."
Apartment Rents Down in Fourth Quarter 2009
In New York City, the vacancy rate improved by 0.1 percentage point for the second straight quarter, but around 60% of rental buildings dropped their rents in the fourth quarter from the previous quarter. Effective rents, including concessions such as one month of free rent, fell 5.6% in New York in 2009.
Thanks to falling home prices and record low mortgage rates, it now costs less to own than it has in the past decade on a mortgage-payment-to-rent basis. But falling rents throughout the country are expected to offset some of the recent improvement in affordability, making renting more attractive than owning in some US markets. Low prices have made Manhattan a buyers market over the past few months, so take advantage of this opportunity to buy a new home while the market is still on your side.
Contact Alfred Real Estate today.
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