No doubt, 30 year mortgage is the most popular type of home loans among people as it offers a fixed interest rate and monthly payments are lower. But due to the long term mortgage borrowers is required to pay off more interest over the loan life. These mortgages are the best options to purchase home through loans.

A fluctuation in the rates on the 30-year mortgages has been recorded as in comparison with the last year these rates are lower this year. Last year the average rates were about 5.16% where as the average rate this year is nearly 5%.

According to Freddie Mac fixed rate mortgages have faced a drastic downfall from the 4.04% to 4.34%. Likewise, this downfall was also recorded on five year adjustable rate mortgages from 4.27% to 4.19% before a week. While the rise in one year ARMs have been recorded from 4.22% to 4.33%.

The interests rates can be reduced by purchasing points that are equal to 1% of the mortgage account. Freddie Mac conducted a survey and according to that 0.7 points for 30 year mortgages and 0.6 points for 15 year, one year and five year mortgages.

Chief Economist for New York based Strategies Research Partners, Mr. Don Rissmiller said, “To me, these numbers say, for another week, so far so good”. The question that’s lingering is what happens when the Fed removes its continuing support for housing”.

7% decreased were noticed in purchase gauge while 1.4% increase in refinancing gauge reported in the first week of February, 2010 as the index of mortgage application decreased 1.2% stated by the Mortgage Bankers Association. Large number of applicants was for refinancing transactions.

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