DOW JONES NEWSWIRES
Mortgage rates fell again this week as 30-year fixed-rate
mortgages remained below 5%, according to Freddie Mac's (FRE)
weekly survey of mortgage rates.
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 4.78% for the week
ended Thursday, down from last week's 4.8% average and 6.06% a year
ago.
Rates on 15-year fixed-rate mortgages were 4.48%, unchanged for
the third week in a row and down from 5.59% a year earlier.
Five-year Treasury-indexed hybrid adjustable-rate mortgages
averaged 4.8%, down from 4.85% last week and well below their 5.73%
average a year ago. One-year Treasury-indexed ARMs were 4.77%, up
from 4.82% and 5.29%, respectively.
To obtain the rates, the fixed-rate mortgages and the 5-year ARM
required payment of an average 0.7 point and the 1-year ARM
required an average 0.5 point. A point is 1% of the mortgage
amount, charged as prepaid interest.
"Rates for fixed-rate mortgages hovered at record lows this week
as ARM rates eased further," Freddie Mac Vice President and Chief
Economist Frank Nothaft said. He added the housing market may be
edging toward a bottom as existing-home sales for March stayed near
their four-month average and new home sales beat expectations.
-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089;
kerry.grace@dowjones.com