Mortgage Rate Update

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The home loan market shook off the Thanksgiving holiday week and started September 26, 2012, with a spreading out of mortgage rates offered by different lenders. As a result, the rate sheet spectrum from low to high individual rates stretched out considerably.Some of the difference is attributed to some lenders being closed on the previous Friday for a four-day Thanksgiving vacation, so they haven’t had a chance to adjust their figures to the market. Only a few lenders were fully active on the previous Friday. This situation in turn creates laggards and extremes as the market average itself moves based on those that were open. The rate sheets for Tuesday are expected to even out the apparent differences considerably as all the viable lenders come into full market play again this week.

The overall average still remained fairly low compared to the early metrics in November 2012, posting an average of 3.375 percent for a conventional 30-year fixed mortgage. That said, other unrelated issues and market factors are seeping back into play again. General market investors are watching Europe once more to see if the next bailout installment is funded for Greece, and additional national economic reports are expected towards the end of the month. Finally, Washington D.C. is holding its breath during the muddling of the “fiscal cliff” talks. Everyone involved in the negotiations seems to have gotten the election message that now is not the time for partisanship. That said, the partisans who aren’t elected haven’t yet acknowledged the same idea. So, the risk of failure still exists, scaring off any major outlay of cash.

Other home mortgage rates remain low as well in this week's market opening. The 15-year fixed mortgage averages 2.75 to 2.875 percent while the fluctuating 5-year adjustable rate mortgage varies wider between 2.625 and 3.25 percent. As a result, marketing campaigns are pushing heavy on eligible consumers to lock their rates in before going into deep winter to avoid float risk. Market watchers are currently not expecting much movement overall in rates going into December unless something drastic occurs externally.

About John Krystof

John Krystof writes about personal finance and money matters for He was born and educated in Central Europe, but presently resides in New York City.

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