According to Freddie Mac, U.S. 30-year mortgage rates fell for a 2nd straight week. 30-year mortgage rates dipped to an average of 6.01 % from 6.05 % last week, while 15-year mortgages held steady at an average of 5.60 %. One-year adjustable rate mortgages, or ARMs, fell to an average of 5.18 % in the week from 5.29 %. Freddie Mac said the “5/1″ ARM, set at a fixed rate for five years and adjustable each following year, averaged 5.57 % , down from 5.67 % a week earlier.
According to a recent government lender survey, FHA mortgage rates remained steady with slight drops for FHA home loan rates across the board. Last week FHA interest rates had worsened, so consumers were relieved tp see the decrease.
Just twelve months ago, 30-year mortgage rates averaged 6.21 %, 15-year mortgages 5.92 percent and the one-year ARM 5.48 percent. The 5/1 ARM averaged 5.92 %. “Recent remarks by Federal Reserve officials, which partly bolstered optimism that financial markets will recover later this year, helped mortgage rates ease up a little this week,” Frank Nothaft, Freddie Mac vice president and chief economist, said in a statement.
“Despite the bleak housing market, there was positive news on the overall state of the economy. Retail sales excluding automobiles rose 0.5 percent in April, over twice that of market forecasts, and there was a significant upward revision in March’s figures as well. Also, the consumer price index for April rose less than expected, allaying some market concerns of inflation taking hold,” Nothaft said. Lenders charged an average of 0.6 % in fees and points on 30-year mortgages, up from 0.3 % last week, and 0.5 % on 15-year mortgages, also up from 0.3 %. Charges on the 5/1 ARM averaged 0.6 %, up from 0.5 % last week, while fees and points on the one-year ARM averaged 0.7 percent, compared with 0.6 % a week ago.
