Mortgage rates made record lows again last week. The sixth consecutive week mortgage rates declined to record lows. Current Fixed conforming 30 year mortgage rates and current fixed conforming 15 year mortgage rates have hit record lows in last week’s Primary Mortgage Market Survey released by Freddie Mac.  

Mortgage rates will probably stay at record lows levels for near future. Mortgage rates will probably even head lower if we head into a deflationary period.

The president of the Federal Reserve Bank of St. Louis, James Bullard, said on CNBC last week that the Federal Reserve should have a ”significant quantitative easing if deflationary expectations in the U.S. continue. ”

He also said ”when you get below a certain inflation rate you have to get off interest-rate targeting, adding that the Fed’s policy should turn more towards quantitative easing — a policy where central banks increase the money supply through other means than interest rates, such as buying government debt.

Primary Mortgage Market Survey

Fixed conforming 30 year mortgage interest rates are averaging 4.54 percent for the week ending July 29, 2010, a decline from last week’s average 30 year mortgage rate of 4.56 percent. Mortgage points on 30 year mortgages averaged 0.7 points, which was no change from the prior week’s average.

Fixed conforming 15 year mortgage interest rates are averaging 4.00 percent for the week ending July 29, 2010, a decline from the previous week’s average of 15 year mortgage rate of 4.03 percent. Mortgage discount points average 0.7 points.

5 year U.S. Treasury indexed adjustable mortgage rates are averaging 3.76 percent for the week ending July, 29, 2010, a decline from the prior week’s average 5 year adjustable mortgage rate of 3.79 percent. Discount points averaged 0.7 points, unchanged from the prior week

1 year adjustable mortgage interest rates are down to 3.64 percent for the week ending July 29, 2010, a decline from the previous week’s average 1 year adjustable mortgage rate of 3.70 percent.

Bank of Internet is advertising some of the highest CD rates currently available. Bank of Internet’s certificate of deposit are available in terms ranging between 3 months to 5 years. You can also open a certificate of deposit account with a term anywhere in between 3 months and 5 years. The minimum opening certificate of deposit balance at Bank of Internet is $1,000.

Bank of Internet’s 3 month to 5 month certificates of deposit currently have a CD rate of 0.35 percent with an annual percentage yield of 0.35 percent. While their short term CD rates are really good CD rate deals Bank of Internet’s longer term CD interest rates are better deals right now.

Certificates of deposit with terms of 6 months to 11 months have a current CD interest rate of 0.75 percent with an APY of 0.75 percent. 12 month CD rates to 23 month CD rates are at 1.25 percent with an APY of 1.26 percent. 

Bank of Internet CD Rates

• 3 to 5 CD Rates 0.35% APY 0.35%
• 6 to 11 CD Rates 0.75% APY 0.75%
• 12 to 23 CD Rates 1.26% APY 1.25%
• 24 to 35 CD Rates 1.94% APY 1.92%
• 36 to 47 CD Rates 2.28% APY 2.25%
• 48 to 59 CD Rates 2.50% APY 2.47%
• 60 month CD Rates 2.82% APY 2.78%

Freddie Mac announced today that its Conventional Mortgage Home Price Index (CMHPI) Purchase-Only Series for the United States registered a 1.1 percent decline from the first quarter of 2009 to the first quarter of 2010. In the first quarter of 2010, the U.S. Index was down 2.1 percent (-8.0 percent annualized) relative to the fourth quarter, on a not-seasonally adjusted basis.

“Home-value declines and continued low mortgage rates have kept home-buyer affordability relatively high.  Mortgage rates on 30-year fixed-rate loans averaged 5.0 percent in Freddie Mac’s Primary Mortgage Market Survey® over the first quarter,” said Frank Nothaft, Freddie Mac vice president and chief economist.

“House price measures tend to show a lot of seasonality, with values lower during the slow home-selling months of autumn and winter and higher during the greater-activity months of spring and summer.  Examining year-over-year home-value changes largely controls for seasonality. Compared with the first quarter of 2009, the national index dipped slightly – down 1.1 percent – with three-of-nine regions posting price gains. Houses in the Pacific region were up 4.5 percent over the past year, and in the Middle Atlantic and West South Central states prices were up about one percentage point, on average.  While values were up the most in the Pacific region over the past year, this gain occurred after values had fallen more than 30 percent over the two prior years, from the beginning of 2007 to the beginning of 2009.”

The CMHPI Purchase-Only Series includes only property values based on home purchases with a conventional mortgage in its calculation. Freddie Mac also produces a CMHPI Classic Series that includes data from both home purchase transactions and mortgage refinancings, with the latter values based on appraisals. Generally, because appraisals are backwards looking through the use of recent comparable property transactions, the Classic Series will typically lag changes in the Purchase-Only series. The CMHPI Classic Series indicated that average U.S. home values fell 1.5 percent (-6.0 percent annualized) during the first quarter.  Comparing the first quarter of 2010 with the first quarter of 2009, the Classic Series shows 6.7 percent depreciation.

The CMHPI Purchase-Only Series had the following regional house-price changes:

Middle Atlantic Division (NJ, NY, PA):  decreased 0.4 percent (-1.7 percent, annualized) in the first quarter of 2010.  Over the last 12 months, home values increased 1.0 percent, and during the last five years, home values increased 10.1 percent.

West South Central Division (AR, LA, OK, TX): fell 0.9 percent (-3.5 percent, annualized) in the first quarter of 2010.  Over the last 12 months, home values were increased 0.7 percent, and during the last five years, home values increased 16.6 percent.

New England Division (CT, MA, ME, NH, RI, VT): declined 1.1 percent (-4.5 percent, annualized) in the first quarter of 2010.  Over the last 12 months, home values decreased 1.7 percent, and during the last five years, home values declined 6.5 percent.

Pacific Division (AK, CA, HI, OR, WA):  decreased 2.0 percent (-7.8 percent, annualized) in the first quarter of 2010.  Over the last 12 months, home values increased 4.5 percent, and during the last five years, home values have decreased 13.2 percent.

South Atlantic Division (DC, DE, FL, GA, MD, NC, SC, VA, WV):  fell 2.3 percent (-8.8 percent, annualized) in the first quarter of 2010.  Over the last 12 months, home values decreased 4.0 percent, and during the last five years, home values fell 5.2 percent.

Mountain Division (AZ, CO, ID, MT, NM, NV, UT, WY):  decreased 2.8 percent (-10.8 percent, annualized) in the first quarter of 2010.  In the last 12 months, home values decreased 6.1 percent; during the last five years, home values declined 4.4 percent.

East North Central Division (IL, IN, MI, OH, WI):  decreased 2.9 percent (-11.2 percent, annualized) in the first quarter of 2010.  Over the last 12 months, home values decreased 3.4 percent, and during the last five years, home values decreased 8.9 percent.

East South Central Division (AL, KY, MS, TN):  decreased 3.1 percent (-11.9 percent, annualized) in the first quarter of 2010.  Over the last 12 months, home values decreased 1.8 percent, and during the last five years, home values increased 8.7 percent.

West North Central Division (IA, KS, MN, MO, ND, NE, SD):  decreased 3.2 percent (-12.1, annualized) in the first quarter of 2010.  Over the last 12 months, home values fell 1.3 percent; over the last five years, home values decreased 0.2 percent.

Unlike other home price indexes based on mean or median values of homes sold during a given period, the CMHPI is constructed using regression techniques from observations of actual sales prices or appraised values of the same homes over time.  The street addresses of properties that serve as collateral for mortgages are processed using software certified by the United States Postal Service to create a uniform address format and are then matched to identify consecutive transactions on the same property.  There are currently 42 million records in the repeat-transactions database used to construct the classic Conventional Mortgage Home Price Index – this database includes transactions on one-family detached and townhome properties serving as collateral on loans originated through the first quarter of 2010 and purchased by Freddie Mac or Fannie Mae by April 30, 2010.

Freddie Mac publishes the CMHPI each quarter.  Index values and growth rates for the classic series are available for the nation as a whole as well as for the nine Census divisions, the 50 states and the District of Columbia, and 392 metropolitan statistical areas (MSAs) and metropolitan divisions; index values and growth rates for the purchase-only series are available for the nation and nine Census divisions.  All of the CMHPI series can be found on Freddie Mac’s web site, www.freddiemac.com/finance/cmhpi/. 

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation’s residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters

Sallie Mae Bank, the banking arm of the student loan company, Sallie Mae, is offering some of the best bank CD rates available right now. Sallie Mae Bank’s certificates of deposit are available in terms of 12 months, 36 months and 60 months.  

Sallie Mae Bank’s 12 month certificate of deposit has a current CD interest rate of 1.54% with a 1.55% annual percentage yield (APY). 36 month certificates of deposit have a bank CD rate of 2.37% with an APY of 2.40%. Five year certificates of deposit have a bank CD rate of 2.96% with an APY of 3.00%.

Sallie Mae Certificate of Deposit Account Details

CD Interest is compounded daily and credited to the account monthly. Early withdrawal penalties are 3 months of simple interest for certificate of deposit accounts 12 months or less. Early withdrawal penalties for certificate of deposit accounts greater than 12 months are 6 months simple interest.

All Certificate of deposit accounts are insured by the Federal Deposit Insurance Corporation for up to $250,000 until the end of 2013. After that date, FDIC insurance protection reverts back to $100,000 per account.  Sallie Mae’s FDIC Cert number is 58177.

Maspeth Federal Savings located in Queens, New York, is offering certificates of deposit that have some of the best CD rates. Maspeth Federal Savings Bank is offering regular certificates of deposit and Individual Retirement Account (IRA) certificates of deposit. Deposit terms for regular CDs and IRA CDs are between 6 months to 60 months.

The bank is currently advertising a 5 year certificate of deposit rate of 2.24 percent with an annual percentage yield of 2.30 percent. While that rate isn’t the highest CD rates currently available their CD rate matches the national average 5 month CD rate according to MonitorBankRates.com.

Maspeth Federal Savings Bank CD Rates

• 6 Month CD and IRA Min $1500 0.89% Rate 0.90% APY
• 9 Month CD and IRA Min $1500 1.03% Rate 1.05% APY
• 12 Month CD and IRA Min $1500 1.66% Rate 1.70% APY
• 18 Month CD Min $1500 1.61% Rate 1.65% APY
• 18 Month Wild Card IRA Min $40 1.61% Rate 1.65% APY
• 24 Month CD Min$ 2500 1.71% Rate 1.75% APY
• 24 Month IRA Min $2000 1.71% Rate 1.75% APY
• 60 Month CD Min $2500 2.24% Rate 2.30% APY
• 60 Month IRA Min $2000 2.24% Rate 2.30% APY

If you are interested in opening a certificate of deposit at Maspeth Federal Savings Bank or obtaining a list of the bank’s current bank CD interest rates go to maspethfederal.com.