Home owners do not borrow in an economic bubble. What happens in the world around you, affects the economic climate in which you will purchase a home mortgage.
Today Palm State Mortgage Company hopes to help you see recent happenings in the Global Market, in context with your personal financial plans and your mortgage situation.
At Palm State Mortgage Company, we generally keep this blog full of down-to-earth news you can use as you plan your mortgage. However, once in a while, it is necessary for everyone to take a good look at the Big Picture, financially speaking.
Your Mortgage and Today’s Global Market: Special Alert
Keeping this in mind, we report that US home buyers are often affected by what is going on globally, as well as locally. Today, August 27, 2015, Freddie Mac was in the news with their monthly and weekly report.
They stated, “Events in China generated eye-catching volatility in equity markets worldwide over the past week.” Then, they quickly explained its importance to US readers like you: “Interest rates also rocked up and down – although to a lesser extent than equities – as investors alternated between flights to quality and bargain hunting among beaten-down stocks.”
Your Mortgage and the PMMS
Thus, announcing the outcome of the famous Freddie Mac mortgage market report, the Primary Mortgage Market Survey® (PMMS®), revealed today, “Average fixed mortgage rates” actually “fell to their lowest levels since May of this year. Their analysis attributed this fall to be due to the “ongoing and substantial global volatility out of China.”
Your Mortgage and Current International Events
On the one hand, some of you might not think you really want to know why the mortgage rates are falling or what country is having the biggest effect on them.
On the other hand, you might want to be aware of the consequences of buying a home mortgage at this time. Keep in mind the basic news facts below:
About that Fixed-Rate Mortgage–For 30 Year Fixed-Rate Mortgages
1. If you are currently Home Mortgage Shopping, this is good news. Palm State Mortgage Company saw the 30-year fixed-rate mortgage (FRM) averaging 3.84 percent. This means an average 0.6 point for the week ending August 27, 2015, and this is even down from last week. Last week, it averaged 3.93 percent. In 2014, at this time, the 30-year FRM averaged 4.10 percent.
Of course, every borrower and every lender has a special financial story. Rest assured, at Palm State, we will help you find a loan that suits your individualized financial situation, while gaining you the best possible rate.
About that Fixed-Rate Mortgage–For 15 Year Fixed-Rate Mortgages
2. What does all this mean if you are shopping for a 15-year FRM? For this week at least, this was also good news for borrowers.
The FRM for 15 years averaged 3.06. Now that is a lower percentage, down from last week an average of 0.6 of a point. Last week, it hovered around 3.15 percent. In 2014, the 15-year FRM averaged 3.25 percent.
Your Mortgage: Is an ARM Your Ideal?
3. We invite you to visit this reliable source if you are interested in a one year or five-year ARM type of mortgage, to get all the news pertinent to those Treasury-indexed hybrid adjustable rate mortgages.
In summary, Sean Becketti, chief economist for Freddie Mac also stated, “There are indications though that the unsettled state of global markets will make the Fed think
twice before taking any action on short-term interest rates in September.”
Then he added important information for current home mortgage shoppers, who must be aware of what regulations the federal government might pursue.
“If that’s the case, the 30-year mortgage rate may remain subdued in the short-to-medium term, providing support for continued strength in the housing sector. Just this week, new home sales were reported to be up 26 percent year over year.”
Palm State Mortgage suspects that the danger in reporting general information, such as this to borrowers, is that it sometimes leads to false expectations. Remember, a mortgage is a customized financial product, and financial arrangements between lenders and borrowers are based on many varying factors and fiscal situations.
The Palm State Mortgage blog attempts to keep you up to date with the international, national and local trends and legislation that impact the everyday lives of American families–even from as far away as China.
