Home mortgage loan rates drop again, this week, now at 4.6%
May 2011 27

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.

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