Mortgage rates fell again this week, with both 15-year fixed-rate loans and 5-year adjustable rate mortgages (ARMs) hitting their lowest points of the year, according to today’s Freddie Mac weekly rate survey.
Average interest rates on 5-year Treasury indexed ARMs fell a full one-tenth of a percentage point, dropping to 3.51 percent this week, compared to 3.61 percent previously. A more modest decline was shown by 15-year fixed-rate loans, which dropped to an average of 3.97 percent, down from 4.02 percent.
Interest rates on the standard 30-year fixed-rate loans showed only a slight decline, dropping to 4.78 percent compared to 4.80 percent the week before. It’s the lowest the 30-year mortgage has been since the week of March 17.
Frank Nothaft, Freddie Mac chief economist, attributed the decline to weak economic data, including this week’s S&P/Case Shiller Home Price Indices showing home values coming close to new post-recession lows and Federal Reserve Data showing weakening business and manufacturing activity in some parts of the country.
Avearge mortgage rates were distinctly lower in the Western region of the country, where 30-year loans averaged 4.71 percent, although with higher fees and points than in other parts of the country. Average interest rates in other regions were much more consistent, ranging from 4.79 percent to 4.81 percent.
By: Kara Johnson | April 28, 2011
