Mortgage loan rates dip in latest weekly survey
Mar 2011 06

The average 30-year, fixed mortgage rate fell just a bit, this past week, landing at 4.87% on a national basis, according to the Freddie Mac weekly survey of loan providers.

The 30-year fixed-rate mortgage (FRM) averaged 4.87 percent with an average 0.7 point for the week ending February 24, 2011, down from last week when it averaged 4.95 percent. Last year at this time, the 30-year FRM averaged 4.97 percent, so rates are basically flat.

A $400,000, 30-year, fixed-rate mortgage at 4.95 percent would run you approximately $2,115 per month in loan repayments. This is a $20 monthly savings when compared to last week.

This week, 15-year fixed rate mortgages averaged 4.15 percent with an average 0.7 point, down from last week when it averaged 4.22 percent. A year ago at this time, the 15-year FRM averaged 4.33 percent.

Frank Nothaft, vice president and chief economist, Freddie Mac says, ““Mortgage rates saw an overall improvement this week. Interest rates for 30-year fixed mortgages were almost 0.2 percentage points below this year’s high set just three weeks ago. This means that homebuyers could now expect to pay $263 less per year on a $200,000 loan.

“However, housing demand still remains weak. New home sales in January were near record lows dating back to 1963 when the data began, according to the Census Bureau. Similarly, pending sales of existing homes fell for the second consecutive month in January, according to the National Association of Realtors┬« .”

So, basically, the supply is there, the money’s available, there just aren’t that many buyers.

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