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Low Mortgage Interest Rates Make Home Buying More Affordable

By Christine Nyholm on 2010-03-04

Mortgage rates continue to be low, which should help prospective home buyers to afford a home, Freddie Mac released the results of its Primary Mortgage Market Survey® (PMMS®) on a March 4, 2010. The 30 year fixed rate mortgage (FRM) averaged 4.97 percent, down from the previous week.

According to information from Freddie Mac, the average interest rate on the 30 year fixed rate mortgage (FRM) average 4.97 percent with an average 0.7 point for the week ending March 4, 2010. During this time period in 2009 the 30 year FRM averaged 5.15 percent.

Home buying is now more affordable because the mortgage interest rates are below 5 percent, according to a statement by Frank Nothaft, Freddie Mac vice president and chief economist. Nothaft stated “ "In fact, monthly principal and interest mortgage payments for a typical family buying a median-priced home of $163,800 were just $709 in January, the lowest amount since February 1998, according to the National Association of Realtors®. For first-time home buyers, the fourth quarter of 2009 was the third most affordable quarter since 1981 behind the first and second quarter of 2009.”

Mortgage Interest Rate Averages for Week Ending March 4, 2010

  • 30 year fixed rate mortgage (FRM): 4.97 percent with an average 0.7 point. The rate is down from the previous week average of 5.05 percent. down from last week when it averaged 5.05 percent. During the same time period in 2009 the 30-year FRM averaged 5.15 percent.
  • 15-year fixed rate mortgage (FRM): 4.33 percent with an average 0.7 point. The rate is down from the previous week average4.40 percent. During the same time period in 2009 the 15-year FRM averaged 4.72 percent.
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM): 4.11 percent with an average 0.6 point. The rate is down from the previous week when it averaged 4.16 percent. During the same time period in 2009 he 5-year ARM averaged 5.08 percent.
  • 1-year Treasury-indexed ARM: 4.27 percent with an average 0.6 point. The ARM rate is up from the previous week when it averaged 4.15 percent. During the same time period in 2009 the 1-year ARM averaged 4.86 percent.

Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.

Written by Christine Nyholm
Huliq.com

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