The Wall Street Journal reported on Friday, July 16, 2010 that mortgage rates for the previous week were for the most part flat. The 30-year average rate on fixed-rate mortgages were remain at a historical record low according to the weekly survey of mortgage rates produced by Freddie Mac.
Mortgage rates typically follow the Treasury market which has experienced a rally even with a general malaise and skepticism of the stock market of the past years.
The 30 year fixed-rate mortgage averaged 4.57% during the week ended Thursday, July 15,2010. That rate remained the same as the prior week but was down from 5.14% compared to July 2009.
Mortgage rates on 15- year fixed-rate mortgages were at the lowest point since 1991 when Freddie Mac began tracking rate trends. Rates last week were 4.06% compared to the previous week down from 4.07% and 4.63% of the previous year 2009.
Five year Treasury-indexed hybrid adjustable rate mortgages (ARM) averaged 3.85%. This rate was up from the previous week ending at 3.75% which was the lowest point for such rates since 2005 when Freddie Mac began keeping trending data on Treasury ARMs. Last weeks number was down from one year prior when it was 4.83% in 2009.
One year Treasury indexed ARMs were at their lowest point last week as the rate fell from one week earlier when it was at 3.75% to 3.74% last week . That 3.74% rate marked the lowest number in 26 years of Freddie Mac keep records of these loans. The 3.74% rate also represented a tumble over one year from 4.76%.
Mortgages held an average 0.7 point to acquire such loans. The point charged on mortgages is equal to one percent of the loan amount and is considered pre-paid interest.
For a more detailed story on this subject go to www.wsj.com of July 16th, 2010.
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Vic Donovan, www.VegasCommercialBroker.com
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