Mortgage Informer

Interest rates on 30-year fixed-rate mortgages dropped in the latest week, a move that bodes well for the hard-hit housing market as it copes with the absence of government support.

Lower interest rates on mortgages should buoy refinancing, putting more cash into consumers’ hands to funnel into the economy. They also make homes more affordable during the spring selling season, the industry’s most important period.

Mortgage rates for 30-year fixed mortgages, the most widely used loan, were 4.70 percent Tuesday afternoon, down from 4.79 percent compared to the same time last week.

U.S. mortgage rates were little changed as the Federal Reserve restated its plan to keep interest rates low for an “extended period.”

Rates for 30-year fixed loans slipped to 5.06 percent in the week ended today from 5.07 percent last week, Freddie Mac said in a statement. The average 15-year rate was 4.39 percent, the McLean, Virginia-based mortgage finance company said.

The Federal Open Market Committee said yesterday that U.S. economic conditions are likely to warrant “exceptionally low” interest rates for an extended period. Low interest rates have bolstered demand for housing by making mortgage payments more affordable. Home sales may slump after a tax credit for some buyers expires tomorrow, said Brad Hunter, chief economist at real estate research firm Metrostudy.

According to the Mortgage Bankers Association’s (MBA) latest Weekly Mortgage Applications Survey for the week ending April 16, the Market Composite Index increased 13.6 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 13.9 percent compared with the previous week.

“Treasury rates fell last week causing a decline in mortgage rates. As a result, refinance applications picked up over the week, as some borrowers took advantage of this recent rate volatility to lock in a low fixed-rate loan,” said Michael Fratantoni, MBA’s Vice President of Research and Economics. “Purchase applications continued to increase coming out of the Easter holiday, as we approach the end of the homebuyer tax credit, and are up modestly over last month.”

The 30-year fixed-rate mortgage averaged 5.07% for the week ending April 15, down from 5.21% last week. A year ago, the mortgage averaged 4.82%. The 15-year fixed-rate mortgage averaged 4.40%, down from 4.52% last week and 4.48% a year ago.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 4.08%, down from 4.25% last week and 4.88% a year ago. And the 1-year Treasury-indexed ARM averaged 4.13%, down from 4.14% last week and 4.91% a year ago.

“After rising for four consecutive weeks, mortgage rates eased back to where they were two weeks ago and still remain historically low,” said Frank Nothaft, Freddie Mac vice president and chief economist, in a news release.

Rates for 30-year home loans surged this week, rising to the highest level in eight months amid the improving economy and the end of a government push to keep rates low.

The average rate was 5.21% this week, according to Freddie Mac’s weekly survey of conforming mortgage rates, released Thursday. The mortgage averaged 5.08% last week and 4.87% a year ago. It hasn’t been higher since the week ending Aug. 13, when it averaged 5.29%.

U.S. mortgage rates climbed to the highest level in almost three months as the Federal Reserve ended a program that helped cut borrowing costs for homebuyers.

Rates for 30-year fixed loans rose to 5.08 percent for the week ended today from 4.99 percent, mortgage finance company Freddie Mac said in a statement. That’s the highest rate since the period ended Jan. 7. The average 15-year rate was 4.39 percent, according to the McLean, Virginia-based company.

Bank of America refinance mortgage rates have been very low for the last several months and it looks as if that will stay the same for a little while longer. The 10 year treasury rate yield recently broke below its 50 day moving average which means home loans are likely to move lower. March 18th is currently see 30 year fixed mortgage rates around 4.75%.

Bank of America and most mortgage lenders have worked very hard to promote their home loans division. When doing any personal finance research online you are likely to see advertisements for low mortgage interest rates. Unfortunately, it seems as if most Americans have either refinanced if they can or are unable to.

Long-term U.S. mortgage rates stayed below 5 percent for the second straight week, according to Freddie Mac’s weekly rate report.

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.

Bank of America refinance mortgage rates continue to remain stable in 2010. In March we have seen Bank of America home loans around 4.75% for a 30 year fixed mortgage. When looking at historical mortgage rates you will clearly notice that this is an extremely low level.

It is very important to note that not everyone will qualify for a 30 year fixed mortgage rate at 4.75%. Even though the average is at this rate it does not mean that borrowers who have little home equity can access these rates. It is becoming more and more common that you will need a significant amount of equity to access low mortgage interest rates.