Mortgage rates lowest this year
National average for a 30-year fixed loan slips to 4.84
Mortgage rates fell to the lowest level of the year last week, as rates fell on US government securities. Fixed mortgage rates tend to be influenced by movements in the yield of 10-year Treasury notes.
The average rate on a 30-year fixed rate mortgage dropped to 4.84% last week from 4.93% a week earlier, Freddie Mac stated last Thursday. It was the lowest level since mid-December, when rates averaged 4.81%.
Bond yields sank after Germany’s move last week to curtail certain kinds of short-selling spooked investors, who shifted money from risky European debt to safer US securities. That also lowered mortgage rates.
Demand for safe investments is high on debt concerns in parts of Europe.
Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day.
The average 30-year fixed rate dropped to a record low of 4.71% late last year, pushed down by a campaign by the Federal Reserve to reduce borrowing costs for consumers. This program ended this spring, but rates have remained low, especially after fears that Greece’s government would default shook world markets.
Last week, the average rate on a 15-year fixed-rate mortgage was 4.24%, down from 4.3% the previous week.
Rates on five-year, adjustable-rate mortgages averaged 3.91%, down from 3.95% a week earlier. Rates on one-year, adjustable-rate mortgages fell to 4% from 4.02%.
Rates do not include add-on fees known as points. One point is equal to 1% of the total loan amount.
The nationwide fee for loans in Freddie Mac’s survey averaged 0.7 of a point for 30-year and 15-year loans, and 0.6 of a point for 5-year and 1-year loans.
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