Mortgage Rates Edge Up While Prices Sag
|
TOOLBOX
   Resize
COMMENT
 Discussion Policy
 CLOSE
Comments that include profanity or personal attacks or other inappropriate comments or material will be removed from the site. Additionally, entries that are unsigned or contain "signatures" by someone other than the actual author will be removed. Finally, we will take steps to block users who violate any of our posting standards, terms of use or privacy policies or any other policies governing this site. Please review the full rules governing commentaries and discussions. You are fully responsible for the content that you post.
Who's Blogging  |
Saturday, February 28, 2009
Rates on 30-year, fixed-rate mortgages rose slightly this week as consumer confidence sagged and sale prices for existing homes fell, Freddie Mac reported.
The average rate on a 30-year mortgage increased to 5.07 percent this week from 5.04 percent last week.
A year ago, the rates averaged 6.24 percent.
Freddie Mac chief economist Frank E. Nothaft noted that the Conference Board's index of consumer confidence fell in February to its lowest level since records began, in January 1967.
"Lower house prices and affordable mortgage rates have yet to spur housing demand," Nothaft said.
On Wednesday, the Mortgage Bankers Association reported that its weekly application index -- an indicator of refinancing activity -- fell 15.1 percent for the week ended Feb. 20.
Average rates for 30-year, fixed-rate mortgages hit a record low of 4.96 percent in January, a decline attributed to the Federal Reserve's move to buy $500 billion in mortgage-backed securities to spur lending by banks.
This week's average rate on 15-year, fixed-rate mortgages, a popular product for refinancing, was 4.68 percent -- unchanged from last week.
Last year at this time, the 15-year rate averaged 5.72 percent.
The average rate on five-year, adjustable-rate mortgages increased to 5.06 percent from 5.04 percent. It stood at 5.43 percent a year ago.
Rates on one-year ARMs rose slightly, to 4.81 percent from 4.8 percent. A year ago, they averaged 5.11 percent.
The rates do not include add-on fees known as points.
The nationwide average fee was 0.7 point for the 30-year, 15-year and five-year mortgages. Fees for one-year adjustables averaged 0.6 point.
