Mortgage rates are well under those from 2008

McLEAN, Va. — Rates on 30-year-fixed mortgages fell the past week, declining along with bond yields amid easing concerns over inflation due to the still-slowing economy, Freddie Mac said Thursday.

The average rate on a 30-year fixed mortgage dropped to 5.04 percent this week from 5.16 percent last week. A year ago, the 30-year, fixed-rate mortgage averaged 6.04 percent.

Average rates for 30-year-fixed mortgages hit a record low of 4.96 percent a month ago, a decline attributed to the Federal Reserve's move to buy $500 billion in mortgage-backed securities to spur lending by banks.

The average rate this week on a 15-year fixed-rate mortgage was 4.68 percent, down from 4.81 percent last week, Freddie Mac said. The rate stood at 5.64 percent a year ago.

Average rates on five-year, adjustable-rate mortgages declined to 5.04 percent from 5.23 percent. Rates on one-year, adjustable-rate mortgages fell to 4.80 percent from 4.94 percent last week.

The rates do not include add-on fees known as points. The nationwide fee for 30-year mortgages averaged .7 point for this week. The fee for 15-year mortgages averaged .6 point.

Fees for five-year adjustable rate mortgages averaged six-tenths of a point, and .5 point for one-year adjustable rate mortgages.

Mortgage finance companies Fannie Mae and Freddie Mac, which were seized by the federal government in September 2008, own or guarantee almost 31 million home loans worth about $5.5 trillion. That's more than half of all U.S. home mortgages.

Share This Story