Thanksgiving financial markets. Mortgage loans and ARM mortgage interest rates hit new all-time lows while home values are down. And as usual, providing personal finance advice, real estate advice and consumer advice with Ilyce Glink on the Clark Howard Show November 23, 2011 on WSB Radio.
On today’s show we talked about Thanksgiving financial markets. There was a surprisingly huge amount of news considering it’s the day before Thanksgiving.
Mortgage loan interest rates dropped to new lows. Here is a rundown according to Freddie Mac:
- A 30-year fixed mortgage is now averaging 3.98 percent. A year ago, that number was 4.5 percent.
- The 30-year ARM is sitting at an average of 2.79 percent with an additional average of 0.5 percent in fees. Last year? 3.25 percent.
- A 15-year fixed mortgage now averages 1 3.33 percent interest rate, down from 3.75 percent this time last year.
The stock market had a rough week too. What is going on? Well according to Fannie Mae’s chief economist Frank Nothaft, we are simply experiencing downward pressure from all quarters.
- The Bureau of Economic Analysis revised third quarter GDP downward – from 2.5 to 2 percent.
- The National Association of Realtors (NAR) reported a 1.4 percent pickup in existing home sales in October, but prices continue to drop.
- Meanwhile, contract cancellations are up – people just cannot get to the closing table.
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