This week, the rates for 30-year home loans went down, almost meet the lowest record that has been reached over the spring.
According to the mortgage company Freddie Mac, the average rate for a 30-year, fixed-rate mortgage was 5.08 percent, down from 5.14 percent a week earlier. Although the rates are a little higher as compared to the record low of 4.78 percent that hit in April, they are still attractive for people looking to buy a home or refinance as they are still in the low region.
Frank E. Nothaft , Freddie Mac’s chief economist said that the low mortgage rates are helping to keep housing very affordable.
Starting from Monday, Freddie Mac collects mortgage rates around the country till Wednesday, each week. Often, the rates fluctuate significantly, even within a given day.
15-year, average fixed-mortgage rate fell to 4.54%
In the last week, the average rate on a 15-year, fixed-rate mortgage fell to 4.54 percent, from 4.58 percent.
It is also possible for borrowers to lower their interest rates by buying points, equal to 1 percent of the loan amount. According to the survey, the average for 30-year loans was 0.7 points, and for 15-year, five-year and one-year loans, it was 0.6 points.
Mortgage rates for five-year and one-year
For a five-year, adjustable-rate mortgage, the rates averaged 4.59 percent, which decreased from 4.67 percent. Whereas one-year, adjustable-rate mortgages fell to 4.62 percent from 4.69 percent.
The drop in mortgage rates, is a function of the longer-term Treasury coming down a bit
George Mokrzan, senior economist at Huntington National Bank in Columbus, Ohio, said that the drop in mortgage rates is probably a function of the longer-term Treasury coming down a bit. This is a good thing, as it should help to further support housing markets and give a little bit more support to that early stage of recovery.
After a period of reduced purchases, it was disclosed by the central bank last week that it has bought a greater-than-average amount of mortgage bonds for two weeks in a row.
However, the increased speed of purchases may not last, and it depends on the nation’s overall economic performance .
