Mortgage Informer

Mortgage rates in the U.S. declined for a second consecutive week as the number of home-loan applications rose.

The rate for 30-year fixed mortgages fell to 4.95 percent for the week ended today from 4.97 percent, Freddie Mac said in a statement. The average 15-year rate was 4.32 percent, according to the McLean, Virginia-based mortgage buyer.

The Federal Reserve is winding down a program to purchase as much as $1.25 trillion in securities backed by U.S. home mortgages. The plan helped reduce rates over the last year, driving borrowing costs for 30-year fixed home loans to a record low of 4.71 percent in December. Mortgage rates may rise as the Fed program ends at the end of the month, said George Mokrzan, senior economist at Huntington National Bank in Columbus, Ohio.

“I still think rates are going up as the rest of the year goes on,” Mokrzan said. “The odds, at this point, point to an improving economy and with that rising interest rates in general.”

Bond purchases from Fannie Mae, Freddie Mac and Ginnie Mae, which buy home loans from lenders and package them into securities, brought down yields and allowed lenders to reduce mortgage rates while still selling the bonds at a profit.

The Mortgage Bankers Association’s index of mortgage applications rose 0.5 percent in the week ended March 5. The refinancing gauge fell 1.5 percent as the index to purchase a home rose 5.7 percent.

Related posts:

• Mortgage Rates on 30-Year U.S. Loans Rise to 5.01%
• Mortgage Rates on 30-Year U.S. Loans Fall to 4.97%
• Mortgage rates on 30-year loans rise to 5.08 percent
• Mortgage application volume rises 2.8 percent
• Mortgage interest rates rise above 5 percent

Tags: Mortgage, Mortgage Rates