Fixed rate mortgage loans flat at 4.50%
Jun 2011 16

Fixed rate mortgage loan rates stayed flat, during the past week.

The average 30-year, fixed mortgage rate rose during the past week, up from 4.49% on a national basis to 4.50%, according to the Freddie Mac weekly survey of loan providers.

The 30-year fixed-rate mortgage (FRM) averaged 4.50 percent with an average 0.7 point for the week ending June 16, up from last week when it averaged 4.49 percent. Last year at this time, the 30-year FRM averaged 4.75 percent, so continued good news for buyers, down a full quarter of a point.

A $400,000, 30-year, fixed-rate mortgage at 4.50 percent would run you approximately $2,027 per month in loan repayments. This is $3 more per month when compared to weeks ago and $60 in monthly savings compared to last year.

Frank Nothaft, vice president and chief economist at Freddie Mac says, “Mortgage rates were little changed this week as financial market participants shrugged off the recent inflation reports. The core producer price index rose just 0.2 percent in May while the core consumer price index increased 0.3 percent, both near the market consensus forecast.

“Much of the run down in home mortgage debt so far has been through second mortgages, according to the Federal Reserve Board. Household mortgage balances fell by more than $930 billion between the peak set at the end of March 2008 and March of this year, of which, second mortgages accounted for $820 billion of the decline.”

Many existing homeowners are taking advantage of the lower rates to refinance, which is freeing up cash for them to use to increase savings or pay down other debt.

What our economy needs them to do is spend!

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