After Hitting Record Low, 30-Year Fixed Rate Inches Up
02/23/2012 BY: ESTHER CHO
After hitting near record lows last week, the 30-year fixed-rate mortgage moved up for the first time in three weeks, according to the Primary Mortgage Market Survey from Freddie Mac.
The 30-year rate averaged 3.95 percent (0.8 point) for the week ending February 23, up from last week’s average at 3.87. The rate is still lower than the average of 4.95 percent from a year ago at this time.
Amid the slight hike after continuing declines for the 30-year rate were reports that the housing market is on a slow road to recovery.
“New data releases this week suggest the housing market is continuing to gradually improve,” said Frank Nothaft, VP and chief economist for Freddie Mac, in a statement. “Loans that were seriously delinquent (90 days or more past due plus the foreclosure inventory) fell to 5.3 percent of prime mortgages at the end of 2011, representing the lowest quarterly share since the start of 2009, according to the Mortgage Bankers Association.”
Northaft also mentioned data from the National Association of Realtors that showed existing-home sales were at the strongest pace in January since May 2010.
The 15-year fixed rate mortgage averaged 3.19 percent (0.8 point), up from 3.16 percent. At this time last year, the 15-year rate was 4.22 percent.
The 5-year adjustable rate mortgage (ARM) saw a slight decrease at 2.80 percent (0.7 point) this week compared to 2.82 percent last week. A year ago this time, the 5-year ARM was at 3.80 percent.
The 1-year ARM also continued to drop at 2.73 percent (0.6 point), down from 2.84 percent last week. During this time last year, the average was 3.40 percent.
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Author: Esther Cho • Date: 02/23/2012 • Tags: Mortgage Rates, Freddie Mac • Category: Market Studies • Users: Agents & Brokers, Attorneys & Title Companies, Investors, Lenders & Servicers, Service Providers
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