May
20

Good News About Mortgage Rates

May 20, 2010

Mortgage rates are going down again and some are posting record lows.

Freddie Mac announced Thursday that the 15-year fixed-rate mortgage (FRM) averaged 4.24 percent this week, its lowest level since since the home funding company started tracking this information in 1991. Last week’s average was 4.30 percent and a year ago at this time, the 15-year FRM averaged 4.50 percent.

The 30-year fixed mortgage rate fell this week to an average of 4.84 percent, its lowest level since December 10, 2009, when it averaged 4.81 percent. The 30-year rate is down from last week’s average of 4.93 percent but slightly higher than the average rate at this time last year of 4.82 percent.

The 5-year adjustable-rate mortgage (ARM) also saw record lows since Freddie Mac started tracking it in 2005; this week’s average was 3.91 percent, compared to 3.95 last week and a whopping 4.79 a year ago at this time. And the 1-year ARM averaged 4.00 percent this week; down from last week’s average of 4.02 percent and from last year’s 4.82 percent. Its the lowest 1-year ARM average rate since October, 2004, when it was 3.96 percent.

“Mortgage rates eased back once again this week to the lowest level of the year,” said Frank Nothaft, Freddie Mac vice president and chief economist. “Low mortgage rates, coupled with the homebuyer tax credit, helped strengthen the housing market in the first four months of the year. New construction on one-family homes rose for the fourth consecutive month in April. [And] homebuilder confidence rose for the second straight month in May to the highest level since August 2007.”

All positive news for the struggling real estate market.

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Tracey

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1 Comments

1

[...] Make sure you have a scheduled closing date, and try to make that date at least a week before June 30. Think of all the people who are going to try to close before the tax credit deadline. Then think of all the homeowners trying to refinance in light of the low mortgage rates. [...]

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