DOW JONES NEWSWIRES
Mortgage rates fell this week, as the average rate on 30-year
fixed-rate mortgages came in further below 5%, according to Freddie
Mac's (FRE) weekly survey of mortgage rates released Thursday.
Mortgage rates have fallen in recent months as providers try to
entice buyers amid the housing market downturn. But many consumers
are wary of making the commitment to purchase a home - and many
prospective buyers face challenges getting financing amid the tight
credit market.
The 30-year fixed-rate mortgage averaged 4.82% for the week
ended Thursday, down from last week's 4.86% average and 5.98% a
year ago. Rates on 15-year fixed-rate mortgages were 4.5%, down
from 4.52% and 5.55%, respectively.
Freddie Mac Vice President and Chief Economist Frank Nothaft
noted long-term fixed-rate mortgages have been below 5% for the
last 10 weeks.
Five-year Treasury-indexed hybrid adjustable-rate mortgages
averaged 4.79%, down from 4.82% last week and well below their
5.61% average a year ago. One-year Treasury-indexed ARMs were
4.82%, up from 4.71% last week but down from 5.24% a year
earlier.
To obtain the rates, the fixed-rate mortgages required payment
of an average 0.7 point and the adjustable-rate mortgages required
an average 0.6 point. A point is 1% of the mortgage amount, charged
as prepaid interest.
-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089;
kerry.grace@dowjones.com