Fannie Mae has declared that housing is finally providing a tailwind to economic growth. The company’s December Economic and Strategic Report says that the market “has turned the corner and a sustained recovery is under way.” Looking into 2013, economists predict mortgage originations will increase by 15% while refinance volume is expected to fall 26%.
Existing home sales rose in October for the third time in four months, while the inventory ticked down to the lowest reading since February 2006. Contract signings for home sales and purchase mortgage applications are up. Existing home sales took a sharp jump in October to the highest level since early 2010. Fannie Mae Chief Economist Doug Duncan stated that “the housing market has stayed resilient and continues to show signs of a strong, sustained recovery.”
The improving housing market will continue to face challenges. Tight lending conditions are among those hurdles. Fed Chairman Ben Bernanke was quoted saying that the lending standards pendulum has “swung too far the other way, preventing creditworthy borrowers from purchasing a home and thereby impeding the economic recovery.”
St. Louis MORTGAGE INTEREST RATES for January 3, 2013:
- Conventional 30-Year Fixed 3.500%/ 3.777% APR
- Conventional 15-Year Fixed 3.000%/ 3.097% APR
- Conventional 7/1 ARM 2.625%/ 3.332% APR
- FHA/VA 30 Year Fixed 3.25%/4.160% APR
- Jumbo 5/1 ARM 2.625%/ 2.426% APR
- Jumbo 15 yr Fixed 3.000%/ 3.094% APR
- Jumbo 30 yr Fixed 4.625%/ 4.719% APR
*The above mortgage rates are based upon an 80% LTV, o/o single family with FICO scores of 720.
Paramount Mortgage is a locally owned Mortgage Banker celebrating our 41st year. Great rates and programs are secondary to what is most desired in a lender relationship: Integrity, Communication and Customer Satisfaction. Be to check out our website: www.paramountmortgage.com
For more information or if you have questions on mortgage rates you may contact me by phone at my direct line, (314) 372-4319, email at rfishel@paramountmortgage.com or you can visit our company website at http://www.paramountmortgage.com.
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