McLEAN, Va. – Long-term mortgage rates rose slightly this week, after last month falling to their lowest levels in almost four years, according to Freddie Mac.
The average for the 30-year, fixed-rate loan increased to 5.72% this week, from 5.67% last week; while the average for the 15-year, fixed-rate mortgage moved to 5.25%, from 5.15%.
But ARM rates moved lower, with the average for the five-year ARM dipping to 5.19%, from 5.21% last week; and the average for the one-year ARM slipping to 5.00%, from 5.03%.
The lower rates and declining home prices are making home purchases more affordable, but tightening credit standards could work against a rebound in the housing market, according to Frank Nothaft, chief economist for Freddie Mac.
"These historically low mortgage rates and declining house prices contributed to the highest housing affordability in December since March 2005, according to the National Association of Realtors," said Nothaft. “However, with banks continuing to tighten lending standards, fewer families will likely have an opportunity to take advantage of these factors.”
