New York, U.S.A. — Mortgage rates showed little movement, with the benchmark 30-year fixed mortgage rate reversing last week’s move and rebounding to 3.52 percent, according to Bankrate.com’s weekly national survey. The average 30-year fixed mortgage has an average of 0.37 discount and origination points.

The average 15-year fixed mortgage rate held at 2.85 percent and the larger jumbo 30-year mortgage remained at the record low of 3.98 percent. Adjustable rate mortgages were mixed, with the 1-year ARM sliding to 2.97 percent, the 5-year ARM staying at 2.74 percent for a third consecutive week, and the 10-year ARM rising to 3.2 percent.

Mortgage rates showed little movement as the fiscal cliff talks looked more like a stalemate. But a newly announced stimulus plan from the Federal Reserve aimed at buying longer-term Treasuries should help bring both bond yields and mortgage rates lower, albeit modestly. Mortgage rates are closely related to yields on long-term government bonds. Don’t expect any big moves in mortgage rates as long as the fiscal cliff talks drag on.

The last time mortgage rates were above 6 percent was November 2008. At the time, the average 30-year fixed rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 3.52 percent, the monthly payment for the same size loan would be $900.32, a difference of $341 per month for anyone refinancing now.

Survey Results

30-year fixed: 3.52% — up from 3.50% last week (avg. points: 0.37)
15-year fixed: 2.85% — unchanged from last week (avg. points: 0.27)
5/1 ARM: 2.74% — unchanged from last week (avg. points: 0.35)

Bankrate’s national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in the top 10 markets.

For a full analysis of this week’s move in mortgage rates, go to http://www.bankrate.com/mortgagerates.

To see mortgage rates in your area, go to http://www.bankrate.com/funnel/mortgages

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New York, U.S.A. – Mortgage rates moved slightly the week of July 19, with the average rate on the benchmark 30-year fixed mortgage rate ticking higher to 4.25 percent, according to Bankrate.com’s weekly national survey. The average 30-year fixed mortgage has an average of 0.39 discount and origination points.

To see mortgage rates in your area, go to http://www.bankrate.com/funnel/mortgages/.

The average 15-year fixed mortgage rate was down modestly to 3.42 percent, while the jumbo 30-year fixed mortgage held at 4.77 percent. Adjustable mortgage rates were also mixed, with the average 5-year ARM inching higher to 3.15 percent and the 10-year rate slipping to 3.66 percent.

The movement in mortgage rates has tempered in the past two weeks, following a run-up from the February lows. The better tone of economic data and the decreased likelihood of any additional stimulus from the Federal Reserve are now baked into the current level of rates. Going forward, it will take either faster job growth indicative of further strengthening in the economy, or a disappointment in corporate earnings and consumer spending that renews worries about the economy, to drive rates decidedly in one direction or another. Mortgage rates are closely related to yields on long-term government bonds.

The last time mortgage rates were above 6 percent was November 2008. At the time, the average 30-year fixed rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 4.25 percent, the monthly payment for the same size loan would be $983.88, a difference of $258 per month for anyone refinancing now.

Survey results

• 30-year fixed: 4.25% — up from 4.23% last week (avg. points: 0.39)
• 15-year fixed: 3.42% — down from 3.44% last week (avg. points: 0.4)
• 5/1 ARM: 3.15% — up from 3.14% last week (avg. points: 0.34)

Bankrate’s national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in the top 10 markets.

The survey is complemented by Bankrate’s weekly Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next seven days. The majority of the panelists, 77 percent, expect mortgage rates to move higher in the coming week. Just 15 percent forecast a decline in mortgage rates, and 8 percent predict mortgage rates will remain more or less unchanged in the next seven days.

For the full mortgage Rate Trend Index, go to http://www.bankrate.com/RTI.

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Slowly, but surely, the tide has been turning in favor of sterling over the past few months, with the euro now significantly weaker against the pound than it has been for many months. In fact, the last time sterling was at its current level of approximately EUR1.20 to the pound was in the summer of 2010 and, before that, in December 2008.

While the UK economy is not yet showing any significant signs of recovery, it seems the weakness which has affected sterling may finally have bottomed out, with currency markets now punishing the euro, which has weakened against both sterling and the U.S. dollar.

For the UK buyer who has been searching for a new home in France, this is significant. The effect of the exchange rate changes over the past few months has been to effectively reduce property prices by around 10 percent, according to Offshoreonline.org. Add to this the aggressive pricing by developers in areas of the Cote D’Azur, such as Nice and Cannes, and the scene is set for UK buyers to at last be able to take advantage of what has been one of France’s stronger property sectors.

Exchange rate movements are important for buyers from the UK. Put simply, around six months ago, one pound sterling would have bought EUR1.10, but now for the same pound sterling, the UK buyer can expect to receive over EUR1.20. The net effect is to make any purchase of euros around 10 percent cheaper, saving GBP 20,000 on a GBP 200,000 house purchase, for example.

Buyers looking at high end new launches, such as Parc Eugenie in Cannes, should immediately see an enhancement to any rental returns, as with lower upfront purchase cost, the real yield they can expect will rise accordingly.

Commenting on the improved outlook for UK buyers in France, Offshoreonline.org managing director, Tim Harvey, said, “Exchange rates are a vital part of the mix for most UK buyers operating in France, but now it seems the tide may be moving slowly in favor of the UK buyer, with the weakening euro opening up some very attractive options for UK buyers.

With mortgage rates available from 3.45 percent, we have noticed a slow, but steady, increase in enquiries since before Christmas which has continued into the New Year.”

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Freddie Mac recently released the results of its Primary Mortgage Market Survey, showing average fixed mortgage rates finishing the year near their all-time historic lows helping to keep homebuyer affordability high. Averaging 3.95%, the 30-year fixed has been at or below 4.00% for the past nine consecutive weeks and only twice in 2011 did it average above 5.00%.

News Facts

• 30-year fixed-rate mortgage (FRM) averaged 3.95% with an average 0.7 point for the week ending December 29, 2011, up from last week when it averaged 3.91%. Last year at this time, the 30-year FRM averaged 4.86%.
• 15-year FRM this week averaged 3.24% with an average 0.8 point, up from last week when it averaged 3.21%. A year ago at this time, the 15-year FRM averaged 4.20%.
• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.88% this week, with an average 0.6 point, up from last week when it averaged 2.85%. A year ago, the 5-year ARM averaged 3.77%.
• 1-year Treasury-indexed ARM averaged 2.78% this week with an average 0.6 point, up from last week when it averaged 2.77%. At this time last year, the 1-year ARM averaged 3.26%.

Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following links for Regional and National Mortgage Rate Details and Definitions. Borrowers may still pay closing costs which are not included in the survey.

Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac.

• “Mortgage rates ended the year hovering near historic lows in an already affordable housing market. For instance, the seasonally-adjusted S&P/Case-Shiller 20-City Composite home price index in October was the lowest seen since March 2003. The largest hit areas were Las Vegas with the lowest reading since January 1997 and Atlanta which was since June 1998.

  It’s not surprising then that over 5% of households in December plan to purchase a home over the next six months, the highest share since May, according to The Conference Board.”

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Expatriates of all nationalities, wherever they are living, will probably have experienced some unpleasant ups and downs with their investments in 2011. Cast your mind back to December 2010 and analysts from UBS were forecasting the FTSE would finish 2011 at 6700, whilst Seven Investment Management went for the sinister sounding 6666.

Many other brokerages forecast the UK market would finish 2011 in a range from 6200 – 6700. Actually, it finished the year at 5572, considerably adrift of the views of many of the experts. With such uncertainly stalking the London and other major global markets, Offshoreonline.org has put together six simple tips for expatriates to help them weather 2012:

1) Get a heath check on your pension and investment portfolio. Volatile stock-markets have made many worried, so clients will want to know their portfolios are well balanced and prudently invested. If all markets are going down, it is likely many portfolios will suffer, but unless you are holding good quality funds, you risk missing out on any upturn when it eventually comes.

Use a UK-regulated broker such as Offshoreonline.org to provide analysis and advice to both those holding a portfolio and those considering new investments.

2) Diversify. Consider quality property. In the year to November 2011, Greater London property prices still managed to advance by 1.4% on average and with rental yields of 5% available in quality locations, that added up to a valuable combination for clever buy-to-let landlords.

3) Use a property search agency to help build your portfolio though, as averages hide the detail. Whilst quality areas such as Wandsworth, Wimbledon, Westminster  (up 7.1%) and others all advanced, many areas in the East of the capital which up to now may have benefitted from the Olympic effect dropped back, some by over 2%, according to search experts Expatfindaproperty.com

4) Consider overseas property too – French real estate has weathered the storm well, particularly in areas such as the Cote D’Azur. Here good quality new homes can be purchased which make ideal rental projects with strong all year round corporate rental demand reflecting a busy conference and cultural calendar incentres such as Cannes, according to Newfrenchrivierahomes.com

5) Check your existing mortgage rates. Many expatriates will find fixed rate contracts coming to an end, but may not have wanted to move mortgage provider. There are still good deals to be had, particularly where the loan represents less than 70% of the value of the house.

6) Check your insurance. Are life and health insurance policies up to date? Going in to 2012, the last thing you want is an expensive medical bill to pay. Get a quote – on average 50% of expatriates do not have any cover – but with apparently mundane complaints such as a trapped nerve in an arm potentially costing over GBP36,000 to treat, annual cover can look very attractive. Modern plans often offer discounts of up to 50% of premiums for those happy to take on an excess, so budgets can be managed.

Above all though, the message is be proactive. Take an interest in your finances and make sure you are on top of the detail to avoid nasty shocks down the line. Plan for the worst, hope for the best.

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