Boston mortgage loan rates stay flat at 4.5%, week of June 23, 2011
Jun 2011 25

Fixed rate mortgage loan rates stayed flat again, during the past week.

The average 30-year, fixed mortgage rate stayed at 4.50%, according to the Freddie Mac weekly survey of loan providers.

The 30-year fixed-rate mortgage (FRM) averaged 4.50 percent with an average 0.8 point for the week ending June 23, the same as last week. Last year at this time, the 30-year FRM averaged 4.69 percent, so continued good news for buyers.

A $400,000, 30-year, fixed-rate mortgage at 4.50 percent would run you approximately $2,027 per month in loan repayments. This is the same as last week and $45 in monthly savings compared to last year, when it would have cost you $2,072 per month.

Frank Nothaft, vice president and chief economist at Freddie Mac says, “Mortgage rates were virtually unchanged this week amid further indications of a soft housing market. Although new construction on single-family homes ticked up in May from April, it was still below the overall pace set in 2010. Moreover, existing home sales fell 3.8 percent in May to the fewest since November 2010.

“The Federal Reserve also reiterated that the housing sector continues to be depressed in its June 22nd policy committee statement. The S&P/Case-Shiller® National Home Price Index fell 2.1 percent between the fourth quarter of 2010 and first quarter 2011. Based on a recent survey by MarcoMarkets of 108 professional forecasters taken in early June, the index is predicted to decline another 1.5 percent by the fourth quarter of this year.”

Mortgage loan rates are at historic lows. Unfortunately, with the economy seemingly stuck in time, not many people are taking advantage of this golden opportunity.

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