Mortgage Rates Trickle Lower
Mortgage rates might be as good as they’re going to get, as there has been little movement over the last couple months now.
This week, interest rates pretty much fell across the board, though not by an extraordinary amount, according to mortgage financier Freddie Mac.
The ever-popular 30-year fixed averaged 4.82 percent for the week ending May 21, down from 4.86 percent a week earlier and 5.98 percent last year.
The 15-year fixed rung in at 4.50 percent, down two basis points from last week and more than a point from the 5.55 percent seen this time a year ago.
“Long-term fixed-rate mortgage rates have remained below 5.0 percent for the past 10 weeks as the U.S. Treasury and Federal Reserve (Fed) act to keep interest rates low through security purchases,” said Frank Nothaft, Freddie Mac vice president and chief economist.
“The Treasury purchased $136 billion in mortgage-backed securities through April and the Fed bought $740 billion through mid-May. In addition, the Fed purchased $115 billion in Treasury bonds since March of this year.
Meanwhile, the five-year ARM averaged 4.79 percent, down from 4.82 percent a week ago and 5.61 percent last year.
The one-year adjustable-rate mortgage was the only loser in the bunch, climbing to 4.82 percent from 4.71 percent, but still below the 5.24 percent seen last year.
Over the past few weeks, mortgage rates have been hovering around record lows, but seem to have found a floor, at least for the time being.
Makes you wonder if interest rates are really going to fall to the low four-percent range as a pair of analysts suggested back in early April.
The rates above are good for conforming loan amounts with a loan-to-value of 80 percent. Jumbo loans continue to price at a premium, with the 30-year averaging around 6.25 percent.
(photo: tastefultn)
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