Rates on 30-year fixed-rate mortgages were near record lows this week as instability in financial markets overseas had investors seeking safety in bonds and mortgage-backed securities, Freddie Mac said in releasing the results of its Primary Mortgage Market Survey.
Rates were headed back up today, however, as renewed confidence in markets had investors moving funds back into riskier investments.
Freddie Mac's survey showed rates on conventional, conforming 30-year fixed-rate loans averaging 4.78 percent with an average of 0.7 point for the week ending May 27, down from 4.84 percent a week ago. That's the lowest rate since the 4.71 percent average during the week of Dec. 3.
The 15-year fixed-rate mortgage averaged 4.21 percent with an average of 0.7 percent, down from 4.24 percent a week ago and 4.53 percent at the same time a year ago. That's the lowest rate registered since Freddie Mac began tracking 15-year loans in August 1991.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.97 percent, with an average 0.7 point, up from 3.91 percent a week ago and 4.28 percent last year.
The 1-year ARM averaged 3.95 percent with an average 0.6 point, down from 4 percent last week and 4.69 percent a year ago. That rate has not been lower since May 2004.
Freddie Mac Chief Economist Frank Nothaft said low rates make homes more affordable, softening the effect of the expiration of the federal homebuyer tax credit.
Courtesy of Inman News
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Hopefully they continue to inch down and make things more affordable to clean up a lot of inventory~
Hopefully the banks won't be too busy with refi's to look at new loans.
There are still some terrific rates to be had! I can't see them staying down where they are for too long.
We'll take all the good news we can get!
I am afraid that Canadian interest rates could start their upticking tomorrow. If so, it will be good for the currency, but bad for the real estate marketplace. We don't need anything like that just yet.
Let's hope the volatility in the European markets continues to keep the interest rates down. It is relatively busy in some of the lower priced homes as I live on Cape Cod in the secondary home market. It has gotten some buyers off the fence.