Mortgage Rates Continue to Decline
Mortgage rates were predicted to rise after the months of decline in the last months of 2010. However, rates only briefly rose above the ling expected 5% for the 30-year fixed-rate mortgage during the month of February and since have slowly fallen over a quarter of a percent.
According to the most recent data on mortgage rate averages, rates have fallen again. The 30-year fixed-rate mortgage average has fallen to lows not seen since mid-January, while the 15-year fixed-rate average has fallen to the lowest level seen since the beginning of the year.
According to Freddie Mac's weekly survey of mortgage rates released on Thursday, May 5th, the 30-year fixed-rate average dropped to 4.71%, down from the 4.78% posted the previous week and the 5% posted the previous year.
The 15-year fixed-rate average fell to 3.89% for the week ending May 5th. That average fell almost a tenth of a percent from the previous weeks posting of 3.97% and fell dramatically when compared to the previous year with a posting of 4.36%.
The five-year Treasury-Indexed hybrid adjustable-rate mortgage average for the week ending May 5th was recorded at 3.47%, down from the 3.51% averaged the previous week and down from the 3.97% the previous year.
The one-year Treasury-indexed adjustable-rate mortgage averaged 3.14% which was down slightly from the 3.15% the previous week and the 4.07% the year before.
In order to obtain mortgages at the fixed-rate averages, borrowers were required to pay an average of a 0.7 point. To obtain the five-year ARM rate borrowers were required to pay a 0.6 point and to obtain a mortgage at the one-year ARM rate; borrowers were required to pay a 0.5 point. A point is considered 1% of the mortgage amount charged as prepaid interest.
While mortgage rates have continued their unexpected decline over the last couple of months, obtaining mortgages at those rates has not been easy for would be buyers. While home prices and low rates make it seem as if this would be the perfect time to invest in a new home, tighter lending standards make that difficult for many prospective buyers.
According to the most recent data on mortgage rate averages, rates have fallen again. The 30-year fixed-rate mortgage average has fallen to lows not seen since mid-January, while the 15-year fixed-rate average has fallen to the lowest level seen since the beginning of the year.
According to Freddie Mac's weekly survey of mortgage rates released on Thursday, May 5th, the 30-year fixed-rate average dropped to 4.71%, down from the 4.78% posted the previous week and the 5% posted the previous year.
The 15-year fixed-rate average fell to 3.89% for the week ending May 5th. That average fell almost a tenth of a percent from the previous weeks posting of 3.97% and fell dramatically when compared to the previous year with a posting of 4.36%.
The five-year Treasury-Indexed hybrid adjustable-rate mortgage average for the week ending May 5th was recorded at 3.47%, down from the 3.51% averaged the previous week and down from the 3.97% the previous year.
The one-year Treasury-indexed adjustable-rate mortgage averaged 3.14% which was down slightly from the 3.15% the previous week and the 4.07% the year before.
In order to obtain mortgages at the fixed-rate averages, borrowers were required to pay an average of a 0.7 point. To obtain the five-year ARM rate borrowers were required to pay a 0.6 point and to obtain a mortgage at the one-year ARM rate; borrowers were required to pay a 0.5 point. A point is considered 1% of the mortgage amount charged as prepaid interest.
While mortgage rates have continued their unexpected decline over the last couple of months, obtaining mortgages at those rates has not been easy for would be buyers. While home prices and low rates make it seem as if this would be the perfect time to invest in a new home, tighter lending standards make that difficult for many prospective buyers.
Comments (1)
Are you expecting rates to continue to come down? My guess would be that rates will again climb and the highs for the year will be in the last half of the year. What are your thoughts.
Account Closed, almost 14 years ago