This past week the average rate on a 30-year fixed mortgage fell to 4.99%, down from 5.06% from a week earlier, national mortgage company Freddie Mac said last Thursday.
It's the 3rd straight weekly decline. The drop comes after rates fall in the bond market this week as concerns about the economy have increased and demand for the safety of government debt, which is closely tied to mortgage rates.
Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day, often in line with long-term Treasury bonds.
Rates for 30-year loans had dropped to a record low of 4.71% in early December, pushed down by an aggressive government campaign to reduce consumers' borrowing costs.
The Federal Reserve is pumping and extra $1.25 trillion into mortgage-backed securities to try to bring down mortgage rates, but that money is set to run out next spring. The goal of the program is to make home buying more affordable and prop up the housing market.
While it's possible that the program could be extended, analysts believe the Fed is reluctant to do so.
The rate on 15-year fixed-rate mortgages fell to 4.4%, down from 4.45% from last week, according to Freddie Mac.
Rates on five-year, adjustable-rate mortgages averaged 4.27%, down from 4.32% a week earlier. Rates on one-year, adjustable-rate mortgages dropped to 4.32% from 4.39%.Making this a very attractive pruduct
The rates do not include add-on fees known as points. One point is equal to 1% of the total loan amount.
No comments:
Post a Comment