Rates on 30-Year Mortgages Up Slightly
May 14, 2009 - 11:47 AMRates on 30-year fixed mortgages rose slightly for the second straight week, but still remained below 5 percent, Freddie Mac said Thursday.
The average rate for a 30-year fixed mortgage was 4.86 percent, up from 4.84 percent last week. Rates have been below 5 percent for nine straight weeks. Last year at this time, the average rate for a 30-year fixed mortgage - the most popular loan among home buyers - was 6.01 percent.
A record low of 4.78 percent for a 30-year fixed rate mortgage was first recorded on the week of April 2, and again on the week of April 30. Freddie Mac's survey dates back to 1971.
Mortgage rates fell significantly over the winter. They slid again after the Federal Reserve said in March that it would buy $1.2 trillion in mortgage-backed securities and $300 billion in long-term government debt, which traditionally influences rates on 30-year home loans.
Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate, even within a given day. The low rates have spurred refinancing activity, though consumers must have solid credit to get the best rates.
The mortgage finance giant said the average rate on a 15-year fixed-rate mortgage averaged 4.52 percent, up just slightly from 4.51 percent last week.
Rates on five-year, adjustable-rate mortgages averaged 4.82 percent this week, down from 4.9 percent last week, Freddie Mac said. Rates on one-year, adjustable-rate mortgages fell to 4.71 percent, compared with an average of 4.78 percent last week.
The rates do not include add-on fees known as points. The nationwide fee averaged 0.6 point for the loans covered in Freddie Mac's report.
(Copyright 2009 Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)