Mortgage rates stay put for now

By Palm Beach Business.com

DELRAY BEACH — Interest rates moved little during the past week, and experts expect more of the same during the next month or so.

Freddie Mac’s Primary Mortgage Market Survey spotted the 30-year fixed-rate mortgage averaging 4.98 percent with an average 0.7 point, down from last week’s 5.03 percent. Last year at this time, the 30-year averaged 6.20 percent.

Bankrate.com’s national mortgage survey put the 30-year at 5.35 percent, with 0.31 point, unchanged from a week ago.

The analysis according to Bankrate: Mortgage rates were mostly in a holding pattern leading up to a meeting of the Federal Reserve’s Federal Open Market Committee. And with the Fed delivering no surprises in their statement that followed, mortgage rates aren't likely to show much movement in response.

The Fed's ongoing purchases of mortgage-backed debt are holding mortgage rates at compelling levels, but this won't be the case indefinitely. As the Fed gradually withdraws support from the market, mortgage rates seem destined to eventually move higher.

Homeowners looking to refinance should act with some urgency to lock in fixed mortgage rates that are near record lows, as there are no guarantees about just how long that will continue to be the case. An improving economic climate and large government debt auctions represent potential catalysts for higher mortgage rates. Mortgage rates are closely related to long-term government bonds.

Also from Freddie Mac: The 15-year fixed rate averaged 4.40 percent this week, with an average 0.6 point, down from 4.46 percent.

The five-year adjustable-rate mortgage  averaged 4.35 percent this week, with an average 0.6 point, down from last week ‘s 4.42 percent.

One-year ARMs averaged 4.47 percent this week with an average 0.5 point, down from 4.57 percent.

From the Bankrate suvey:  15-year mortgages averaged 4.72 percent, while 30-year fixed rate jumbos to 6.50 percent. Adjustable rate mortgages were mixed, with the average 1-year ARM inching lower 5.27 percent and the 3-year ARM rising to 4.88 percent.

Meanwhile, Bankrate’s panel of mortgage experts expect rates to stay put over the short term.