For the week ending February 16, 2013 consumers are directed to three specific issues:
The weekly mortgage rate survey released this past Thursday resulted in no changes. The benchmark 30 year Fixed Rate remained at 3.530% as reported by industry giant Freddie Mac. The news is of little consequence as economic conditions were basically flat during the reporting timeline. A recap of key rates are:
- 30 Year - 3.530%
- 15 Year - 2.770%
- 5/1 ARM - 2.640%
- 1 Year ARM - 2.610%
While interest rates remained flat, consumers saw home prices increase. The impact has resulting in a more robust completion. Some have intimated the increase may create the type of bubble we have been fighting to get out of. Should this trend continue and as the economy improves; even at its tepid pace, look for mortgage rates to increase because of increased demand.
President Obama SOTU Address
Right now, there's a bill in this Congress that would give every responsible homeowner in America the chance to save $3,000 a year by refinancing at today's rates. Democrats and Republicans have supported it before. What are we waiting for? Take a vote, and send me that bill. Right now, overlapping regulations keep responsible young families from buying their first home. What's holding us back? Let's streamline the process, and help our economy grow.
During President Obama’s State of the Union Address he mentioned a proposal offering relief for homeowners seeking to refinance. Over the years refinancing has always been an attractive form of direct economic stimulus because a reduction in payments translates into increased available funds. He admonished Congress to approve or at minimum vote on the bill re-introduced by Senators Robert Melendez and Barbara Boxer.
Titled S249 (H.R.6428), the bill enhances homeowner’s ability to refinance their existing mortgage. Like many bills presented from Democratic members, they have fallen on deaf ears by the majority led Republican party. To educate and motivate the public to apply pressure on their political representatives, the President has wrapped the proposal in his message as he is visiting various communities following the address.
All three of these issues are just a few benchmarks consumers will be gauging in the week's ahead.