Tags: Average Rate on 30-Year Mortgage Dips to 5 Percent

Average Rate on 30-Year Mortgage Dips to 5 Percent

Thursday, 17 Feb 2011 11:40 AM

Fixed mortgage rates inched down this week, following a dip in Treasury yields.

The average rate on a 30-year fixed mortgage slipped to 5 percent from 5.05 percent last week, Freddie Mac said Thursday. It hit a 40-year low of 4.17 percent in November.

The average rate on the 15-year fixed home loan also fell to 4.27 percent from 4.29 percent. It reached 3.57 percent in November, the lowest level on records dating back to 1991.

Mortgage rates tend to track the yield on the 10-year Treasury note, which slipped this week after the White House unveiled its $3.7 trillion budget request for the next fiscal year. The yield had spiked last week on fears of higher inflation.

The recent rise in rates adds another obstacle for the struggling housing market. Historically low rates did little to boost sales last year. Potential buyers remain on the sidelines because of job worries, falling home prices and record high foreclosures.

The percentage of homes in the foreclosure process rose to 4.6 percent in the final three months of last year, up from 4.4 percent in the July-September quarter, the Mortgage Bankers Association said Thursday. The number of foreclosures is expected to peak mid-year.

Still, fewer homeowners fell behind on their mortgage payments in the October-December quarter than in the previous quarter, a sign of improvement.

To calculate average mortgage rates, Freddie Mac collects rates from lenders across the country on Monday through Wednesday of each week. Rates often fluctuate significantly, even within a single day.

The average rate on a five-year adjustable-rate mortgage fell to 3.87 percent from 3.92 percent. The five-year hit 3.25 percent last month, the lowest rate on records dating back to January 2005.

The average rate on one-year adjustable-rate home loans edged up to 3.39 percent from 3.35 percent.

The rates do not include add-on fees, known as points. One point is equal to 1 percent of the total loan amount. The average fee for the 30-year and 15-year loan in Freddie Mac's survey was 0.7 point. The average fee for the five-year and 1-year ARM was 0.6 point.

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Fixed mortgage rates inched down this week, following a dip in Treasury yields. The average rate on a 30-year fixed mortgage slipped to 5 percent from 5.05 percent last week, Freddie Mac said Thursday. It hit a 40-year low of 4.17 percent in November. The average rate on...
Average Rate on 30-Year Mortgage Dips to 5 Percent
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2011-40-17
Thursday, 17 Feb 2011 11:40 AM
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