As July home sales leaped month to month, mortgage rates dropped to a three-month low last week. This, as well as the tax credit set to expire in November for first-time buyers, should fuel housing excitement.
The mortgage rates for the 30-year fixed rate dropped from last week, with an average of 5.12 percent and 0.7 points for the week ending Aug. 20th. Last week the same mortgage was at 5.29 percent with 0.7 points. Last year at this time, the 30-year fixed rate mortgage averaged 6.47 percent, with 0.7 points.
The 15-year fixed mortgage rates averaged 4.56 percent with an average 0.7 point. This is down from last week when the same mortgage rate averaged 4.68 percent with 0.7 points. A year ago at this time, the 15-year fixed rate mortgage averaged 6 percent even, with 0.7 points.
Five-year adjustable-rate mortgages (ARMs) averaged 4.57 percent and 0.6 points. Last week the same mortgage rates were at 4.75 percent and 0.6 points. A year ago, the 5-year ARM averaged 5.99 percent, with 0.6 points.
One-year Treasury-indexed ARMs averaged 4.69 percent this week with 0.5 points. This is down from last week when it averaged 4.72 percent and 0.4 points. At this time last year, the 1-year ARM averaged 5.29 percent, but with 0.5 points.
For those not aware, points are pre-paid interest which is paid at the time the mortgage is taken out.
Written by Michael Santo
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