Sunday, March 1, 2009

30-Year Mortgage Rates Inch up

Low Mortgage rates and lower home prices are failing to spur housing demand as of yet. With rates and home prices at historic lows, home sales are at their lowest pace since July 1997 and prices are off 10.9 percent from their high set in April of 2007.
Freddie Mac reports an increase in the 30-year fixed mortgage rate to 5.07 percent for the week ended Feb. 26.

Rates rose slightly, from 5.04 percent the prior week.

"Mortgage rates were little changed this week amid mixed data reports of a slowing economy," said Frank Nothaft, Freddie Mac vice president and chief economist.

He said that lower house prices and affordable mortgage rates have yet to spur housing demand. For instance, house prices declined by 8.7 percent for the 12 months ending in December 2008 and were down 10.9 percent from their highs set ion April of 2007, according to the Federal Housing Finance Agency's purchase-only monthly home price index.

Meanwile, existing home sales fell 4.7 percent in January to 4.05 million units, the slowest pace since July 1997, he said.

The five-year adjustable-mortgage rate rose to 5.06 from 5.04 percent over the same period, while the one-year ARM bumped up to 4.81 percent from 4.80 percent.

However, the 15-year fixed mortgage rate held steady at 4.68 percent.

Source: Freddie Mac





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