WASHINGTON – Home loan rates slipped for a second week in a row, but remained above last year’s decades-lows, according to Freddie Mac.
The average for the 30-year, fixed-rate mortgage declined to 5.06% this week, from 5.09% last week; and the average for the 15-year, fixed-rate loan dipped to 4.45%, from 4.50%.
ARM rates were mixed, with the average for the five-year ARM falling to 4.32%, from 4.44% last week; and the average for the one-year ARM rising to 4.39%, from 4.31%.
Frank Nothaft, chief economist for Freddie Mac, noted home sales, especially for lower-priced homes, have improved as the economy gets better. Also, "with fixed mortgage rates staying near a record low, many homeowners are taking the opportunity to refinance,” said Nothaft. "For instance, over the past three-and-a-half months, on average more than 75% of conventional mortgage applications were for refinance transactions, according to the Mortgage Bankers Association."
