Mortgage rates finally saw some relief after rising for four straight weeks since hitting record lows back in early December, according to mortgage financier Freddie Mac.
The popular 30-year fixed averaged 5.09 percent during the week ending January 7, down from 5.14 percent a week earlier, but slightly above the 5.01 percent average seen a year earlier.
The 15-year fixed fell to 4.50 percent from 4.54 percent, and sits just below the 4.62 percent average seen this time last year.
The five-year adjustable-rate mortgage remained unchanged at 4.44 percent, while the one-year ARM slipped two basis points to 4.31 percent.
A year ago, the five-year stood at 5.49 percent and the one-year averaged 4.95 percent.
“Mortgage rates eased slightly this week after rising consecutively through December,” said Frank Nothaft, Freddie Mac vice president and chief economist. “Current interest rates for fixed-rate mortgages are just about at their annual average for 2009, while ARM rates are considerably below their averages for last year.”
“As the economy strengthens further and the Federal Reserve (Fed) decides to raise its overnight target rate, ARM rates will follow suit because they are typically tied to shorter-term interest rates. However, the federal funds futures market does not anticipate any Fed action until the second half of 2010.”
Learn more about how mortgage rates are determined.
The interest rates above are good for conforming loan amounts with a loan to value of 80 percent or less; certain pricing adjustments will raise your actual interest rate.
Jumbo loans continue to price a percentage point or more higher than conforming loans.
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