Toward the end of 2009, mortgage rates rose, as housing numbers seemed to pick up somewhat. However, as the New Year arrives, the first set of mortgage numbers for 2010 seem to show a drop in mortgage rates.
The 30-year fixed-rate mortgage was 5.09 percent for the week ending Jan. 7. This is down from the last report in 2009, where it was a 5.14 percent average. Last year, average rates were 5.01 percent. Average points were 0.7 percent.
For 15-year fixed-rate mortgages, the rate averaged 4.50 percent. This was down from 4.54 percent last week. It is also down from 4.62 percent a year ago. Average points were 0.7 percent.
Five-year adjustable rate mortages averaged 4.44 percent, which was unchanged from last week. Last year, it was 5.49 percent, so this is a significant drop from last month. Average points were 0.6 percent.
One-year ARMs averaged 4.31 percent. This is down from 4.33 percent last week. Last year, one-year ARMs averaged 4.95 percent. Average points were 0.6 percent.
For those not aware, points are sort of pre-paid interest. Each point equals 1 percent of your loan amount. For example, 1 point on a $100,000 loan would cost $1,000.
Written by Michael Santo
HULIQ.com
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