Mortgage Rates Inch Lower
Mortgage rates mostly improved during the week, though it seems like they may have bottomed, according to mortgage financier Freddie Mac.
The ever-popular 30-year fixed averaged 5.07 percent, down just a single basis point from last week, but well below the 5.93 percent seen a year ago.
Still, rates have been unable to match record lows seen back in April, and with the economy beginning to show signs of improvement, its unlikely rates will fall much further (how mortgage rates are determined).
The 15-year fixed shed four basis points to average 4.50 percent, easily beating its year-ago average of 5.54 percent and making it quite attractive for those who can make the larger monthly payment.
The five-year adjustable-rate mortgage (ARM) averaged 4.51 percent this week, down from 4.59 percent last week and 5.87 percent last year.
The one-year ARM was the only loser of the bunch, climbing two basis points to 4.64 percent, but remaining handily below than last year’s average of 5.21 percent.
The rates above come at a cost of 0.5 to 0.7 mortgage points, and require a conforming loan amount and minimum 20 percent down payment.
Interest rates for mortgages with smaller down payments and jumbo loan amounts will come at a higher cost.
(photo: blmurch)
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