WASHINGTON – Home loan rates fell significantly this week after jumping last week, according to Freddie Mac.
The average for the 30-year, fixed-rate loan declined to 5.07% this week, from 5.21% last week; while the average for the 15-year mortgage dropped to 4.40%, from 4.52%.
Short-term rates also moved lower, as the average for the five-year ARM fell to 4.08%, from 4.25% last week; and the average for the one-year ARM inched down to 4.13% from 4.14%.
"After rising for four consecutive weeks, mortgage rates eased back to where they were two weeks ago and still remain historically low,” said Frank Nothaft, chief economist for Freddie Mac. “The Federal Reserve indicated in its April 14 regional business survey that consumer prices generally remained level and producers had difficulty passing along increases in some raw materials. This likely will keep inflation at bay as evidenced by the 1.1% growth in core consumer prices for the 12 months ending March 2010, which was the lowest annual increase since January 2004."
