Rates On 30 Year

Home sales in the Baltimore region rose 6 percent in June, a slight increase compared with gains in recent months but a healthy sign in a climate of higher mortgage rates, the Greater Baltimore Board of Realtors said yesterday.For the month, 1,902 homes sold in Baltimore and Baltimore, Howard, Harford and Carroll counties, compared with 1,789 sales in June 1995, the board said.The sales increase fell far short of the board's reported gains of 29 percent in May and 35 percent in April. The number of contract signings, which indicate coming sales, climbed 12 percent in June but failed to keep pace with increases of 40 percent in April and 28 percent in May."

Rising mortgage rates are making gamblers out of some home loan borrowers.With rates on 30-year, fixed mortgages stretching toward the 9 percent mark, variable-rate loans and their hybrids have begun to look more attractive to consumers -- despite their risks.Adjustable loans offer borrowers less security than fixed loans, because rates can rise after a period of time.Early this year, borrowers could get 30-year, fixed loans with interest in the 7 percent range. But rates have risen, averaging 8.30 percent nationally last week.

Despite recent easing of mortgage rates and renewed interest in home buying, metropolitan Baltimore's housing market struggled through the first half of the year, with sales off by 16 percent and midyear totals below those of each of the past four years.Through June 30, a total of 7,285 homes sold in Baltimore and in Baltimore, Howard, Harford and Carroll counties, down from the 8,679 homes sold in the first six months of 1994, the Greater Baltimore Board of Realtors said yesterday. Though sales were especially strong during the first half of last year, midyear totals have come close to or surpassed the 8,000 mark for each of the past four years.

The Baltimore-area housing market emerged from an extended slump in September, as home sales posted a gain for the first time in 14 months. Throughout the region, 1,500 home sales were settled during the month, an 11 percent jump over September 1994, the Greater Baltimore Board of Realtors said.Sales rose almost everywhere in the region, with Baltimore and Harford counties leading the way with gains of 14 percent. Only Howard County saw a sales decline, of 3 percent."Is the market better?

Margaret Steen wakes up most mornings with mortgage interest rates on her mind.By 8:30, she makes the first of the usual calls -- to Inland Mortgage, Citibank, Prosperity Mortgage. Often, she gets rate sheets faxed to her house. By the time she meets her first client, the Long & Foster Real Estate Inc. agent is armed with the latest in financing options and ways to beat the rates.With mortgage rates rising and home sales falling, real estate agents like Ms. Steen are working feverishly for every homebuyer.

It's as inevitable as the rise and fall of mortgage rates. They spike up, economists say, and fixed-rate loans go out of vogue as quickly as adjustable-rate loans come back.With rates rising, the pattern is emerging again -- but this time with a twist.Today, lenders are offering more flexible terms than in the past, making some ARMs less risky. The changes, along with the rising rates, are helping to draw borrowers in droves."I haven't written a fixed-rate loan since February," said David Meltzer of CTX Mortgage in Owings Mills.

John Day and his family have gone house hunting for about two months now, just long enough for the rules to change.When they started, single-family homes in the $230,000 range fell well within reach. But as the financial planner and his wife, Marlene, inspected more than a dozen houses, rising mortgage interest rates dogged them. As rates crept over the 9 percent mark in late October for the first time this year, the Days halted plans to move from their cramped Arbutus townhouse.Now they wonder, how long should they wait?

Average rates on 30-year mortgages fell again last week, t 7.19 percent from 7.23 percent, according to the Federal Home Loan Mortgage Corp.Baltimore rates were also down to 7.19 percent, from 7.20 percent the week before.Statistics, Page 4H

Rates on 30-year fixed mortgages rose last week for the first time in five weeks, according to the Federal Home Loan Mortgage Corp.The average national rate for 30-year mortgages was 6.86 percent, up from 6.74 the previous week, according to Freddie Mac.Fifteen-year mortgages averaged 6.40 percent, up from 6.31 percent. For one-year adjustable mortgages, the average initial rate was 4.19 percent, up from 4.14 percent.The rate started the year just above 8.07 percent and has been falling for most of 1993, except briefly during the spring when investors became temporarily nervous about inflation.

Most lenders have a message for homeowners who have put off refinancing their mortgage: Interest rates have already hit bottom and are on their way up, at least for now.Rates have climbed up over 8 percent during the past week, and are up about a half a percentage point over the past two weeks.Most lenders are offering fixed rate 30-year mortgages with interest rates of about 8.3 percent and charging two points. Points are fees a lender charges to handle a loan. One point is equal to 1 percent of the loan amount.

U.S. mortgage rates again at record low WASHINGTON: Rates on 30-year mortgages fell to the lowest level on record for the second consecutive week after the Federal Reserve launched a new effort to assist the staggering U.S. housing market. Mortgage finance giant Freddie Mac said Thursday that average rates on 30-year, fixed-rate mortgages dropped to 4.78 percent this week, from 4.85 percent last week. It was the lowest in the history of Freddie Mac's survey, which dates back to 1971. Rates are down by more than a full percentage point from a year ago. "Mortgage rates followed other interest rates lower this week amid reports of slower economic growth," Frank Nothaft, Freddie Mac vice president and chief economist, said in a prepared statement.

Aberdeen Proving Ground signs first BRAC tenant A business park under construction outside the north entrance of Aberdeen Proving Ground has signed its first tenant related to federal base restructuring, the park's developer said yesterday. Columbia-based Corporate Office Properties Trust said it has a long-term lease with the MITRE Corp. for 54,000 square feet in the first building under way in North Gate Business Park. The three-story building is scheduled for completion in the second quarter of next year.

The economic turmoil of 2008 has left few bright spots, but here's one: Mortgage rates have plummeted. Rates on 30-year, fixed loans are hovering around 5 percent - the lowest level since Freddie Mac began tracking rates in 1971. Some economists predict a further slide in rates once Barack Obama becomes president and rolls out an economic rescue plan. And that could mean thousands of dollars in savings for Maryland homeowners. "The people who have done everything right are now going to benefit, and will be very well rewarded," said Mari Adam, a financial planner and owner of Adam Financial Associates Inc. in Boca Raton, Fla. "We are saying to our clients, anyone who can refinance should refinance.

Under Armour to supply SEC tourney apparel Sports apparel company Under Armour Inc. said yesterday that it has reached an agreement to provide apparel to athletes competing in any Southeastern Conference championships, starting this year.. The NCAA allows athletes who participate in SEC championship games to receive a gift on behalf of the conference for playing in the game. Under Armour will provide the apparel that will serve as these gifts. The Baltimore company did not disclose financial details of the multiyear agreement.

30-year mortgage rates drop to five-month low WASHINGTON: Rates on 30-year mortgages dropped sharply this week, falling to the lowest level in five months, as the government's takeover of mortgage giants Fannie Mae and Freddie Mac had the hoped-for impact of lowering mortgage rates. Freddie Mac reported yesterday that its nationwide survey found that 30-year, fixed-rate mortgages dipped to 5.93 percent this week, down from 6.35 percent last week. The sharp decline pushed the 30-year rate below 6 percent for the first time since late May and marked the lowest level for this rate since they averaged 5.88 percent the week of April 17. Associated Press Mattress Discounters files for bankruptcy Mattress Discounters Corp.

CHICAGO - The Federal Reserve has aggressively cut interest rates. Houses are sitting around unsold. The stage appears to be set for mortgage rates to fall as lenders compete to attract that scarce quarry: the well-qualified homebuyer. You wish. Rates on 30-year fixed-rate mortgages have remained stubbornly above 6 percent for months. Interest rates on those loans are averaging 6.09 percent, mortgage investor Freddie Mac reported Thursday, an increase from the 6.08 percent the previous week.

WASHINGTON - The average rate on a 30-year mortgage has climbed above 6 percent for the first time since July, suggesting that housing sales may start to slow as borrowing costs rise. Mortgage giant Freddie Mac, in its weekly survey of mortgage rates nationwide, reported Thursday that rates on 30-year, fixed-rate mortgages averaged 6.01 percent for the week that ended March 24. The rate was up from 5.95 percent the previous week and was the highest since the week that ended July 27, when rates averaged 6.08 percent.

The average rate on a benchmark 30-year fixed mortgage in the United States rose to 5.72 percent last week from 5.7 percent, according to Freddie Mac. The one-year adjustable rate fell to 3.97 percent from 4 percent, Freddie Mac said. The 15-year fixed rate rose to 5.12 percent from 5.1 percent. Rates on 30-year mortgages hit a high this year of 6.34 percent the week of May 13. Rates have slowly drifted downward as economic activity cooled in the late spring and early summer and inflation fears receded.

WASHINGTON - Mortgage rates around the country fell last week for the first time since the middle of last month. The average interest rate on 30-year fixed-rate mortgages dropped to 6.04 percent for the week ending Friday, Freddie Mac reported Thursday in its weekly nationwide survey. That was down from 6.19 percent the previous week. Last week's rates marked the first time rates on 30-year, 15-year and one-year adjustable-rate mortgages fell since the week ending Nov. 15. At that time, rates on 30-year mortgages dropped to 5.94 percent, the lowest level since the mortgage giant began tracking them in 1971.

Home sales in the Baltimore region rose 6 percent in June, a slight increase compared with gains in recent months but a healthy sign in a climate of higher mortgage rates, the Greater Baltimore Board of Realtors said yesterday.For the month, 1,902 homes sold in Baltimore and Baltimore, Howard, Harford and Carroll counties, compared with 1,789 sales in June 1995, the board said.The sales increase fell far short of the board's reported gains of 29 percent in May and 35 percent in April. The number of contract signings, which indicate coming sales, climbed 12 percent in June but failed to keep pace with increases of 40 percent in April and 28 percent in May."