Mortgage rates steady

Low mortgage rates may help homeowners refinance, leading to less distressed sales, according to Rob Vondersitt of NorthPoint Lending Group Inc. Photo courtesy of Flickr. http://www.flickr.com/photos/respres/2539334956/

The national average for a 30-year fixed-rate mortgage got comfortable at 5.15 percent, not budging one bit in the week ended Feb. 10 from the previous week, Bankrate.com reported Thursday.

Thanks to the Fed’s buying up of mortgage-backed securities, 2010 rates have remained relatively stable, only varying by about 12.5 basis points from the year’s peak, to its low. Illinois’ average mortgage rate, however, fell to 4.85 percent, from 4.93 percent the prior week, according to Zillow Inc.

Though Rob Vondersitt, manager of Chicago-based mortgage brokerage firm NorthPoint Lending Group Inc., is seeing local rates hit closer and into the 5 percent range, he still considers them to be “very attractive.”

“They are just phenomenally historic great rates,” Vondersitt remarked. “There’s a lot of talk of higher rates, but hopefully that’s not going to happen until the end of the year.”

Though Zillow’s spokeswoman, Katie Curnutte, wouldn’t ascribe an exact numeral to the mortgage rate forecast once the Fed stops buying up mortgage-backed securities in March, she doesn’t anticipate a drastic increase. Still Curnutte did note that potential homebuyers shouldn’t rush to buy in fear of rising rates.

“Homebuyers first must make sure they are really, really ready to buy financially,” Curnutte emphasized. “They should have a healthy down payment and intend to stay in the home for at least seven to 10 years.”

National rates haven’t hit 6 percent since November 2008, so a homeowner making monthly payments on a $200,000 loan, now writes a check for 12 percent, or $150 less.

Vondersitt also noted that the low rates will continue to benefit those interested in refinancing their homes.

“Lower rates are keeping people from selling, and there are less distressed sales,” Vondersitt explained. “Overall, they’re getting more comfortable in their homes.”

As for other national rates, Bankrate found that 15-year fixed-rate mortgages fell to 4.52 percent for the week ended Wednesday from 4.55 percent the week earlier. Like the 30-year fixed-rate mortgages, rates for loans that are fixed for five years and become adjustable in the sixth year remained unchanged at 4.56 percent for the second week in a row.

Tags: foreclosures, mortgages, refinancing