Just five open houses are scheduled for this Sunday in the Back Bay. Most people (including most real estate agents …) prefer to be out of town during the holiday weekend.

If you’re in town, make these real estate agents happy by dropping by for a visit. Maybe they’ll even treat you to some iced tea (or a cold beer) if you do.

Above, 236 Marlborough Street #2, Back Bay , Boston, Massachusetts. Julie Harrison of Gibson Sotheby’s International Realty is the listing agent.

The average 30-year, fixed mortgage rate plummeted during the past week, down from 4.61% on a national basis to 4.60%, according to the Freddie Mac weekly survey of loan providers.

The 30-year fixed-rate mortgage (FRM) averaged 4.60 percent with an average 0.7 point for the week ending May 26, 2011, down from last week when it averaged 4.61 percent. Last year at this time, the 30-year FRM averaged 4.84 percent, so continued good news for buyers, almost a full quarter of a point.

A $400,000, 30-year, fixed-rate mortgage at 4.60 percent would run you approximately $2,051 per month in loan repayments. This is $7 less per month when compared to weeks ago and $57 in monthly savings compared to last year(!).

Frank Nothaft, vice president and chief economist at Freddie Mac says, “Fixed mortgage rates eased slightly for the sixth consecutive week amid reports of slower economic activity. The index of leading indicators fell 0.3 percent in April and represented the first monthly decline since June 2010. In addition, the Federal Reserve banks reported less business and manufacturing activity in Philadelphia, Chicago and Richmond.

“U.S. house prices indexes may be nearing a bottom soon. On a national basis, prices fell 0.3 percent between February and March, which was the smallest decline since November 2009, according to the Federal Housing Finance Agency. In addition, four of the nine Census Regions exhibited positive growth, compared to none in February. Separately, the Mortgage Bankers Association reported a further reduction in the serious delinquency rate (90 or more days plus foreclosures) in the first quarter, which stood at the lowest reading since the second quarter of 2009.”

So, the economy seems to be stuck in place. Meanwhile, prices aren’t dropping very much, any more. And, fewer people are past due on their loans.

My colleague Emily Ingardia at Warren Residential Group has listed a one-bedroom, ~704-square foot condo in the South End, listed for $454,900.

The home is located in the historic church at 2 Clarendon Street, which was renovated into condominiums following a massive fire in the 1980′s.

There is a private, street-level entrance to the unit off a private patio. The home is accessible to all the great restaurants on Tremont Street and to several supermarkets, delis and coffee shops.

From the MLS listing:

Elegant and spacious one bedroom condominium located off the courtyard at The Church at 2 Clarendon Street. The condominium has brand new stainless steel appliances, granite counter tops, hardwood floors, large closets and in-unit washer and dryer. Provides a semi-private patio and has available to it a large common area roof deck overlooking Boston. Prime South End location, near corner of Clarendon and Tremont, in a professionally managed building with a private entrance.

Please contact me for complete details, more photos, and to set up private showings.

A list of all open houses in the Back Bay scheduled for the weekend of Sunday, May 22, 2011.

Please contact me for complete details and to set up private showings.

Above, 360 Newbury Street #411, Back Bay, Boston, Massachusetts. Patrick Cutter of Otis & Ahearn is the listing agent.

At the end of 2009, several widely-respected economists (I almost wrote ‘communists’) predicted that the average 30-year fixed mortgage loan would rise from its rate then, 5%, up to 6%, by the end of 2010.

This never came to pass.

It’s expected that this week’s Freddie Mac national survey of mortgage loans will show a rate at around 4.53%, almost a full point and a half under six percent.

From a Washington Post article:

… Amy Crews Cutts, deputy chief economist at Freddie Mac, said interest rates are bound to rise to 6 percent by the end of 2010 because private buyers will demand a higher rate of return on the securities than the Fed did. Lenders may have to raise the rates they charge to consumers in order to make that happen.

From a CNBC story:

“If you told me by the end of 2010 a 30-year rate was at 6 percent, that sounds about right,” says Mark Zandi, chief economist at Moody’s. “I don’t think there’s any question rates are headed up.”

This is pretty interesting. The lower rate is undoubtedly good for buyers and those who are refinancing purchases of home loans.

On the other side, however, it reflects continued weakness in the general economy. Rates are being kept low because the US federal government has continued to buy up mortgage debt on the open market. It wouldn’t be doing this if it felt the economy could stand on its own.

If you asked those same economists what they would predict for the next year to 18 months, I bet they’d say again that interest rates will rise.

As I did last time, this time I agree with them!