Real Estate Notes

30-year mortgage rates hold steady

Saturday, April 24, 2010

Rates on 30-year mortgages didn't budge from last week, mortgage company Freddie Mac said Thursday.

The average rate for 30-year fixed-rate mortgages was 5.07 percent. Last year at this time, 30-year fixed-rate mortgages averaged 4.80 percent, Freddie Mac said.

This week, the average rate on a 15-year fixed-rate mortgage was 4.39 percent, down slightly from 4.40 percent last week. Rates on five-year adjustable-rate mortgages averaged 4.03 percent, down from 4.08 percent last week, and rates on one-year adjustable-rate mortgages rose to 4.22 percent from 4.13 percent.

The rates do not include add-on fees known as points. One point is equal to 1 percent of the total loan amount. The nationwide fee for loans in Freddie Mac's survey averaged 0.7 of a point for 30-year loans, 0.6 of a point for 15-year and five-year loans, and 0.5 of a point for one-year loans.

Mortgage applications rose 13.6 percent for the week ended April 16, according to the Mortgage Bankers Association. That was the most in seven weeks, as consumers hurried to apply for mortgages before tax credits for first-time and certain other home buyers expire at the end of the month. The portion that was for refinancings climbed 15.8 percent. Applications to purchase a home rose 10.1 percent.

Low mortgage rates may help support demand for homes after the tax incentives expire. Last week rates fell for the first time in about a month after several increases that coincided with the Federal Reserve winding down and then ending its mortgage-backed securities program. The program helped lower home-loan rates to a record low of 4.71 percent last year.

-- From news services

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