Long-term mortgage interest rates fell in the latest week, according to Freddie Mac, one of the nation’s largest mortgage companies, remaining close to historic lows.
“Mortgage rates on fixed-rate loans and some ARM products eased this week,” said Frank Nothaft, Freddie Mac vice president and chief economist. “The housing industry is starting to exhibit some positive signs, albeit scarce and too early to tell how permanent.”
Nothaft continued, “In its April 15th regional economic report, the Federal Reserve reported that better-than-expected buyer traffic led to a scattered pickup in home sales in a number of its Districts over the 6-week period ending on April 6th. Factors such as homebuyer tax credits, low mortgage rates, and more affordable prices were cited as leading to more potential buyers. This may have added to the rise in homebuilder confidence in April, which rose to the highest level in six months, according to the National Association of Home Builders. Moreover, confidence increased in each of the four regions, led by the Northeast and Midwest.”
The average rate on a 30-year fixed rate mortgage (FRM) decreased to 4.82 percent, excluding fees in the week ended April 16, 2009, from 4.87 percent the previous week. One year ago, the average rate on a 30-year FRM was 5.88 percent.
Rates on 15-year fixed rate loans averaged 4.48 percent, down from 4.54 percent the week before. The current average rate is the lowest on record since the beginning of the Freddie Mac survey in August 1991. Last year at this time, the average rate was 5.40 percent.
And interest rates on one-year adjustable rate mortgages rose to 4.91 percent, an increase from 4.83 percent one week earlier. During the same week of April 2008, the average rate was 5.10 percent.
