Mortgage rates flat during past week, 4.86%, less than 5%
Apr 2011 08

The average 30-year, fixed mortgage rate barely rose during the past week, up from 4.86% on a national basis to 4.87%, 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 April 7, 2011, up from last week when it averaged 4.86 percent. Last year at this time, the 30-year FRM averaged 5.21 percent, so good news.

A $400,000, 30-year, fixed-rate mortgage at 4.87 percent would run you approximately $2,116 per month in loan repayments. This is $15 more per month when compared to last week but $83 in savings compared to last year.

This week, 15-year fixed rate mortgages averaged 4.10 percent with an average 0.7 point, up from last week when it averaged 4.09 percent. A year ago at this time, the 15-year FRM averaged 4.52 percent.

Frank Nothaft, vice president and chief economist at Freddie Mac says, ““Mortgage rates were little changed after an encouraging employment report from the Bureau of Labor Statistics. The economy added 216,000 jobs in March and the unemployment rate fell for the fifth consecutive month to 8.8 percent marking the lowest rate in two years. Additionally, the private sector has gained 560,000 workers in the first quarter of this year, which represents the largest quarterly increase since the first quarter of 2006.”

Will the lower unemployment rates lead to inflation in home mortgage loan prices? I don’t know. If rates go over 5%, will the market freeze up? The rates were higher, last year, but the enticement of an $8,000 federal tax credit brought buyers to the table.

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