Mortgage loan rates drop in weekly survey, April 21
Apr 2011 21

The average 30-year, fixed mortgage rate improved during the past week, up from 4.91% on a national basis to 4.80%, according to the Freddie Mac weekly survey of loan providers.

The 30-year fixed-rate mortgage (FRM) averaged 4.80 percent with an average 0.6 point for the week ending April 7, 2011, up from last week when it averaged 4.91 percent. Last year at this time, the 30-year FRM averaged 5.07 percent, so continued good news for buyers.

A $400,000, 30-year, fixed-rate mortgage at 4.80 percent would run you approximately $2,098 per month in loan repayments. This is $27 less per month when compared to last week and $66 in monthly savings compared to last year.

This week, 15-year fixed rate mortgages averaged 4.02 percent with an average 0.7 point, up from last week when it averaged 4.13 percent. A year ago at this time, the 15-year FRM averaged 4.39 percent.

Frank Nothaft, vice president and chief economist at Freddie Mac says, “Low inflation is keeping mortgage rates at bay. The core consumer price index rose just 0.1 percent in March, below the market consensus forecast. The 12-month growth rate in core prices was 1.2 percent, which is also rather low by historical standards.

“The housing market continues to struggle. Although housing starts and existing home sales in March were stronger than the market consensus, they were still at low levels. Moreover, homebuilders became more pessimistic in April about the near-term according to the NAHB/Wells Fargo Housing Market Index.”

Homebuilders are still struggling and housing starts down. That may not change for awhile. The sub-5% mortgage loan rates are a good thing for buyers and should help the market. Whether inflation will increase is a fear right now.

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