Fixed rate mortgage loans drop even more, this week, at 4.55%
Jun 2011 02

If you have an accepted offer on a new home but haven’t locked in your mortgage rate, yet, you’re in luck. Fixed rate mortgage loans are cheaper than ever.

The average 30-year, fixed mortgage rate dropped again during the past week, down from 4.60% on a national basis to 4.55%, according to the Freddie Mac weekly survey of loan providers.

The 30-year fixed-rate mortgage (FRM) averaged 4.55 percent with an average 0.6 point for the week ending June 2, down from last week when it averaged 4.60 percent. Last year at this time, the 30-year FRM averaged 4.79 percent, so continued good news for buyers, almost a full quarter of a point.

A $400,000, 30-year, fixed-rate mortgage at 4.55 percent would run you approximately $2,039 per month in loan repayments. This is $12 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 followed U.S. Treasury yields lower this week amid financial market concerns that the current lull in the economy is continuing. First quarter growth in consumer spending was revised downward by half of a percentage point to 2.2 percent, according to the Bureau of Economic Activity, consumer confidence in May was weaker than the market consensus forecast, and the manufacturing industry slowed for the third straight month in May.

“The housing market is showing strain as well. The S&P/Case-Shiller® National Home Price Index fell 5.1 percent between the first quarters of 2010 and 2011, representing the largest annual decline since the third quarter of 2009. In addition, the index of pending existing home sales dropped 11.6 percent from March to April, led by the Midwest and South regions where the tornadoes and flooding occurred.”

So, take advantage of others’ misfortunes and lock up a purchase, today!

Leave a Comment