30-Year Rates Drop to Near 5%

Real Estate Blog

Sunday, February 22 2009

The interest rate continues to decline, which is good news for all home owners. With buy downs, the interest rate can be locked in below 5.0%. Call me at 812-499-9234 for up to date rate information. If your current interest rate is above 6.0% it may be to your advantage to re-finance your mortgage.

30-Year Rates Drop to Near 5%

Mortgage rates across the board fell this week, a welcoming sign to potential buyers and home owners looking to refinance.

The 30-year fixed-rate mortgage averaged 5.04 percent this week, a drop from last week's 5.16 percent. Last year at this time, the 30-year rate averaged 6.04 percent, Freddie Mac reports.

Freddie Mac reported the following for other rates for the week:

15-year mortgage rates: averaged 4.68 percent, down from last week's 4.81 percent. Last year at this time: 5.64 percent.
5-year hybrid adjustable-rate mortgages: averaged 5.04 percent this week, a drop from last week's 5.23 percent. Last year at this time: 5.37 percent
1-year ARMs: averaged 4.8 percent, down from last week's 4.94 percent. Last year at this time: 4.98 percent

"Mortgage rates followed bond yields lower this week as recent economic reports suggest the economy is still slowing, which reduces the future threat of inflation," says Frank Nothaft, Freddie Mac's chief economist.

Source: Freddie Mac(02/19/09)

Posted by: Rolando Trentini AT 10:00 am | Permalink | Email