Friday, February 12, 2010

Mortgage Rates Sneak Under Five Percent, Again

Mortgage rates were mostly lower this week, according to the latest survey from mortgage financier Freddie Mac.

The uber-popular 30-year fixed dipped to 4.97 percent from 5.01 percent during the week ending February 11, and remains just below the 5.16 percent seen a year ago.

“Interest rates on 30-year fixed-rate mortgages are below 5 percent for a third week this year, which helps a number of homeowners to refinance their existing housing debt” said Freddie Mac vice president and chief economist Frank Nothaft, in a statement.

“In mid-June of last year, for example, 30-year fixed-mortgage rates topped nearly 5.6 percent. Currently, the monthly payments would be almost $77 per month lower on a $200,000 loan balance.

The 15-year fixed averaged 4.34 percent this week, down from 4.40 percent a week ago and 4.81 percent a year ago.

The five-year adjustable-rate mortgage slipped to 4.19 percent, down from 4.27 percent last week and 5.23 percent last year.

The low rates have contributed to refinance demand, with more than two out of three mortgage applications used for that purpose in the first six weeks of 2010, according to the MBA.

However, the one-year ARM bucked the trend, rising to 4.33 percent from 4.22 percent, but it’s still beating its year-ago average of 4.94 percent.

The mortgage rates above are good for conforming loan amounts with a loan-to-value of 80 percent; pricing adjustments may raise or lower your contract rate.

Jumbo loans continue to price about a percentage point higher than conforming loans.

Any questions or concerns don’t hesitate to contact me, Gene Neal your Mortgage Expert.

Tel (631) 687-3510 Ext. 101

Fax (631) 687-3513