Mortgage Rates Keep Falling
WASHINGTON – Mortgage rates declined this week to the lowest level of the year as investors poured money into the safe haven of U.S. government securities.
The average for the 30-year, fixed-rate loan dipped from 4.84% last week to 4.78% this week, its lowest since early December when it was 4.71%, according to Freddie Mac. The average for the 15-year, fixed-rate mortgage fell to 4.21% from 4.24%.
ARM rates were mixed, with the average for the five-year ARM rising from 3.91% to 3.97% and the average for the one-year ARM declining from 4% to 3.95%.
“These low rates will help to elevate home-buyer affordability and soften the effects of the sunset of the home-buyer tax credit,” said Frank Nothaft, chief economist for Freddie Mac. “The credit substantially propelled home sales, as reflected in the strength of the April existing and new home sales, which were up 7.6% and 14.8%, respectively.”