Mortgage rates slipped lower this week thanks to a weaker-than-expected jobs report, mortgage financier Freddie Mac reported today.
The classic and never out-of-style 30-year fixed averaged 5.03 percent during the week ending March 12, down from 5.15 percent last week and 6.13 percent a year ago.
The 15-year averaged 4.64 percent, down from 4.72 percent a week earlier and 5.60 percent this time last year.
“Mortgage rates had room to ease this week following news of a weaker jobs market, which may slow consumer spending and keep inflation at bay,” said Frank Nothaft, Freddie Mac vice president and chief economist.
“The 30-year fixed-rate mortgage rate remains very close to January’s all time recorded low of 4.96 percent. Indeed, mortgage rates have drifted up and down only by about one-quarter of a percent in the first months of this year.
Meanwhile, the five-year ARM slipped to 4.99 percent, down nine basis points from last week and well below its year-ago average of 5.58 percent.
The one-year ARM averaged 4.80 percent this week, down six basis points from last week and slightly better than the 5.14 percent seen last March.
“Given the recent historically low mortgage rates, homeowners have a strong incentive to try and refinance. For instance, the Bureau of Economic Analysis reports that the effective mortgage rate for loans outstanding in the fourth quarter of 2008 was around 6.2 percent, or almost 1.2 percentage points above this week’s average rate for 30-year fixed-rate mortgages.”
I think most homeowners know interest rates are favorable right now, but obviously it’s more complicated than that.
Not everyone can take advantage of the low rates, whether they have too little equity, a low appraisal, a jumbo loan, insufficient income, etc, etc.
Freddie’s weekly interest rate survey covers conforming mortgages with a loan-to-value of 80 percent.
Jumbo loans continue to price about one-and-a-half points higher than conforming loans.
(photo: banalities)
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