Mortgage rates remain near record lows, stimulating borrowing

By Palm Beach Business.com

DELRAY BEACH – Interest rates rose slightly over the past week but still remain near record lows, according separate surveys released Thursday.

Freddie Mac’s Primary Mortgage Market Survey found the 30-year fixed-rate mortgage averaging 4.87 percent, up from last week’s 4.78 percent. Last year at this time, the 30-year FRM averaged 5.88 percent.

Bankrate.com, meanwhile, said its weekly survey put the average for the 30-year at 5.20 percent, up from last week’s 5.15 percent.

The Freddie Mac survey found the 15-year averaging 4.54 percent, up from last week when it averaged 4.52 percent.

Five-year adjustable-rate mortgages averaged 4.93 percent this week, up 4.92 percent a week ago.

The 30-year, 15-year and five-year ARM also included an average 0.7 point.

One-year ARMs averaged 4.83 percent this week with an average 0.5 point, up from last week when it averaged 4.75 percent.
Bankrate’s survey pegged the 15-year at 4.75 percent and the one-year ARM at 5.27 percent.

“Mortgage rates rose slightly this week but still remained historically low,” said Frank Nothaft, Freddie Mac vice president and chief economist. “Interest rates for 30-year fixed-rate mortgages have averaged below 5.0 percent for the last four weeks, which should keep homeowner affordability at record levels.

“Given these low rates, housing demand has strengthened. Conventional mortgage applications both for refinancing and for home purchases have increased over the past five consecutive weeks ending April 3. Since the end of February, applications for home purchases were up about 22 percent and nearly 129 percent for refinancing, according to the Mortgage Bankers Association.”