Fixed Mortgage Rates Hold Near Record Lows

Freddie Mac recently released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates down slightly and hovering just above their record lows as markets waited for the Federal Reserve’s monetary policy announcement. The 30-year fixed-rate mortgage averaged 3.88 percent and has been below 4 percent all but one week in 2012. The 15-year fixed, a popular refinancing choice, averaged 3.12 percent.

Additional details from the PMMS include:
-30-year fixed-rate mortgage (FRM) averaged 3.88 percent with an average 0.7 point for the week ending April 26, 2012, down from last week when it averaged 3.90 percent. Last year at this time, the 30-year FRM averaged 4.78 percent.
-15-year FRM this week averaged 3.12 percent with an average 0.6 point, down from last week when it averaged 3.13 percent. A year ago at this time, the 15-year FRM averaged 3.97 percent.
-5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.85 percent this week, with an average 0.6 point, up from last week when it averaged 2.78 percent. A year ago, the 5-year ARM averaged 3.51 percent.
-1-year Treasury-indexed ARM averaged 2.74 percent this week with an average 0.6 point, down from last week when it averaged 2.81 percent. At this time last year, the 1-year ARM averaged 3.15 percent.

Source: Freddie Mac

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The Home Team

Air Travel on the Rise in 2012 as Americans Flock to the Skies

TripAdvisor®, one of the world’s largest travel sites, recently announced the results of its annual air travel survey of more than 1,000 U.S. respondents. Americans are flocking to the skies this year as 91 percent of respondents said they plan to fly domestically in 2012, compared to 84 percent that did last year. International flights are also on the rise, with 65 percent planning a flight out of the country, up from 55 percent in 2011.

Mobile Use Takes Off
There has been a significant increase in mobile device usage for air travel among survey respondents.

-Nearly half of all fliers now use a smartphone to check flight status, up from 30 percent in last year’s survey.
-30 percent report using a device to check-in to a flight, up from 17 percent.
-Use of tablets and iPads in-flight are up 15 percent, with more than one in four travelers now calling theirs a carry-on essential.

Fliers seem skeptical about the need to shut off their beloved mobile devices.

-58 percent question whether shutting off electronic devices during takeoff and landing is really necessary.
-40 percent can remember a time when they’ve left their devices on during flight (accidentally or intentionally).

Anti-social in the Air
When it comes to flying, the majority of travelers have no interest in socializing.

-76 percent of travelers prefer to keep to themselves while in-flight.
-Only 9 percent expressed interest in trying a “social seating” program that allows fliers to choose a seatmate based on social network profiles.
-40 percent would pay extra to sit in a designated “quiet” section of the plane.

Not even a presidential candidate could get some fliers to come out of their shell: 33 percent would not choose to sit next to Barack Obama, Mitt Romney, Ron Paul, or Newt Gingrich, if given the opportunity.

Calling for More Comfort
Twenty-two percent of survey participants don’t enjoy a single thing about air travel, and most travelers cite legroom and seat comfort (or lack thereof) as their biggest complaint.

-41 percent believe that more legroom is the biggest improvement airlines can make, with 30 percent citing more comfortable seating. However, 71 percent aren’t willing to pay for extra legroom on domestic flights less than four hours long.
-On flights longer than four hours, however, 35 percent would shell out $25 for more legroom.

Frequent Flier Favorites
Travelers like their frequent flier programs and, when it comes to booking, brand does matter.

-52 percent subscribe to frequent flier programs and find them valuable.
-58 percent say the brand of airline is important when considering which flight to book.
-15 percent say that racking up frequent flier miles is the most enjoyable thing about air travel.
-Of the 20 percent of fliers who order an alcoholic drink on-board, 42 percent favor wine.
-Singapore Airlines tops most people’s wish lists, with 17 percent saying they haven’t yet flown with this global carrier but would like to.

Top 5 Favorite U.S. Airports:
1. Orlando International Airport, Fla.
2. Hartsfield-Jackson Atlanta International Airport, Ga.
3. Dallas/Fort Worth International Airport, Texas
4. San Francisco International Airport, Calif.
5. Charlotte Douglas International Airport, N.C.

Additional Air Travel Tidbits
-More than half plan to participate in TSA’s pre-check program.
-The three most popular months for air travel this year are May, October and September.
-27 percent would choose one airline over another if the flight offered Wi-Fi.
-45 percent are concerned that rising gas prices will cause air fares to increase, so they plan to book travel plans early.
-43 percent consider airplanes to be the most germ-laden travel location, more so than hotel rooms and public transportation.

“As air travel becomes more stressful, fliers flock to mobile technology,” says Bryan Saltzburg, general manager of TripAdvisor Flights. “In-flight Wi-Fi, powerful new mobile devices and other tech carry-on essentials allow fliers to create a more relaxing and enjoyable flying experience.”

Source: TripAdvisor

Survey Shows Consumer Attitudes More Positive

A new survey shows that Americans’ concerns about key economic and housing issues are beginning to subside. Fannie Mae’s February 2012 National Housing Survey shows that consumer attitudes have stabilized across most indicators—including personal finances, housing, and employment—compared to late summer and fall of 2011. The survey polls 1,003 Americans via telephone interview to assess their attitudes toward owning and renting a home, mortgage rates, homeownership distress, the economy, household finances, and overall consumer confidence. Homeowners and renters are asked more than 100 questions used to track attitudinal shifts.

 

The survey shows that the most dramatic change revolves around the economy—35 percent of Americans now feel that the economy is on the right track, up 19 percentage points since November, and 57 percent think the economy is on the wrong track, down 18 percentage points since November.

 

Americans’ confidence about personal financial situations, household income, and household expenses, as well as attitudes about homeownership and renting is holding at steady levels. Also important to note, Americans’ concerns about losing their job in the next 12 months has stabilized since the late fall, with 76 percent of Americans saying they are not concerned in February 2012, compared to 70 percent in November 2011. Fannie Mae believes that the recent pick-up in the pace of hiring over the past few months is directly responsible for alleviating consumer concerns about unemployment.

 

Here are some additional highlights from this important survey:

Only 12 percent of respondents believe that their personal financial situation will worsen in the next 12 months, a 3 percentage point drop from January and the lowest value in over a year.

33 percent say their expenses have increased significantly over the past 12 months, a 3 percentage point decrease from last month and the lowest level in the past 12 months.

28 percent of respondents expect home prices to increase over the next 12 months (consistent with last month), while 15 percent say they expect home prices to decline (down 1 percentage point since last month).

10 percent of Americans say that mortgage rates will go down in the next 12 months, a 2 percentage point increase from last month.

The percentage of respondents who say it is a good time to sell rose by 3 percentage points to 13 percent, the highest level in over a year.

45 percent of respondents think that home rental prices will go up, a 2 percentage point increase from last month.

 

Published with permission from RISMedia.

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