Freddie Mac today released the results of its Primary Mortgage Market Survey®  in which the 30-year fixed-rate mortgage (FRM) averaged 4.99 percent with an average 0.7 point for the week ending January 21, 2010, down from last week when it averaged 5.06 percent. Last year at this time, the 30-year FRM averaged 5.12 percent. 

Please note that in my prior Saratoga Voice post this week, quoted mortgage rate slightly higher than 4.99% for conforming 30 year fixed mortgage loans, but this is with no points!  Currently, 1 point buys down about .25%, 1 and 1/2 points buys even more and these rate sheets change daily, so for the latest real world, in the market “scoop, call me at 408-857-8800 or John Shapiro of Private Mortgage Advisors at 408-913-7933.

“Fixed mortgage rates followed bond yields lower for the third consecutive week, pushing 30-year mortgages below 5 percent once more,” said Frank Nothaft, Freddie Mac vice president and chief economist.  ”The federal funds futures market indicates no increase in the Federal Reserve’s target rate following its upcoming committee meeting on January 26th and 27th.”

I publish this information weekly to help give home buyers and home sellers a feel for where the market is going and to give a perspective  on what this means for home sales in Saratoga, CA and surrounding communities such as Los Gatos and Monte Sereno.   Keep in mind that because of the high value of Saratoga Homes most loans are non-conforming jumbo loans of $729,750 or above, which were at 5.7% this past week, so be careful that newspaper headlines are generally talking about statistics that do not directly apply to specific local markets.

Rick Bonetti | Alain Pinel Realtors | 408-857-8800 | DRE #01237009