Long-term mortgage rates continued to trickle down last week. It was a very slight drop, but as current mortgage rates remain near historic lows, interest in home sales will continue to rise, perhaps helping the economy bounce back faster.
The current mortgage rates for the 30-year fixed rate dropped from last week, with an average of 5.07 percent and 0.7 points for the week ending Sept. 10th. Last week the same mortgage was at 5.08 percent with 0.7 points. Last year at this time, the 30-year fixed rate mortgage averaged 5.93 percent, with 0.7 points.
The 15-year fixed mortgage rates averaged 4.5 percent with an average 0.7 points. This is up from last week when the same mortgage rate averaged 4.54 percent but with 0.6 points. A year ago at this time, the 15-year fixed rate mortgage averaged 5.54 percent, with 0.7 points.
Five-year adjustable-rate mortgages (ARMs) averaged 4.51 percent and 0.5 points. Last week the same mortgage rates were at 4.59 percent and 0.6 points. A year ago, the 5-year ARM averaged 5.87 percent, with 0.7 points.
One-year Treasury-indexed ARMs averaged 4.64 percent this week with 0.6 points. Last week it averaged 4.62 percent and 0.6 points. At this time last year, the 1-year ARM mortgage rate averaged 5.21 percent, with 0.6 points.
For those not aware, points are pre-paid interest which is paid at the time the mortgage is taken out. Besides watching interest rates, consumers would do well to watch points as well. A 0.1 percent drop (or rise) in points can be significant when applied against the price of a house.
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