Mortgage loan interest rates continue to hold steady at under 5% for the ninth week in a row.
Although Freddie Mac reported a minimal mortgage interest rate increase of .02 percent for the week ending May 14th, 30-year fixed rate mortgages continue to hover below the 5% mark. Despite the slight increase, the interest rates, 4.84 last week to 4.86 this week, are still the best we have seen in 40 or 50 years especially during a buyer’s market. Last year for the same period, the interest rate on an average 30-year loan was 6.01 percent.
15 year mortgage rates barely edged up by .01 percent from 4.51 to 4.52 for this same week period. While the five-year adjustable mortgage rates slipped to 4.82 percent from 4.9 percent; and the one-year ARM fell to 4.71 percent from 4.78 percent.
The biggest change was High Balance Conforming Owner Occupied and 2nd Home loans which were at a low mortgage interest rate of 4.875% for 30 year fixed.
While the mortgage interest rates showed minimal increase, the volume of loan applications was down. The low mortgage interest rates and all-time high affordable housing are attracting more first time home buyers. According to Frank Northaft, Freddie Mac VP and Chief Economist, “Relatively low house prices and interest rates are clearly helping first-time homebuyers. First-time homebuyers accounted for half of existing home sales in the first three months of this year.”
Freddie Mac collects mortgage interest rates each week from lenders around the country.
Written by Andee Allen. She is freelance writer, Strategic Media Coach/Consultant, Real Estate Investor, and California Realtor (License #01854926). You are welcome to contact Andee at andeeallen@gmail.com or on her website at www.strategicmediacoach.com.
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