U.S. 30-Year mortgage rates drop back to 5 percent

The U.S. 30-year fixed-rate mortgage (FRM) dropped back slightly this week after reaching the highest point since April 2010 a week earlier, said the Primary Mortgage Market Survey released Thursday by Freddie Mac.


Freddie Mac said that 30-year FRM averaged 5.0 percent for the week ending on Thursday, down from last week when it averaged 5.05 percent. Last year at this time, the 30-year FRM averaged 4.93 percent.


The 15-year FRM this week was 4.27, dropping from last week's 4.29 percent. The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.87 percent, down from the previous week's 3.92 percent.


Meanwhile, the one-year Treasury-indexed ARM averaged 3.39 percent this week, slightly higher than last week's 3.35 percent.


"Fixed mortgage rates eased slightly this week and continue to be very affordable. Prior to 2009, interest rates for 30-year fixed-rate mortgages had never been at 5 percent since our survey began in April 1971. In both 1981 and 1982, the rates were over three times as high as they are today," said Frank Nothaft, vice president and chief economist of Freddie Mac. "The housing market is struggling to regain traction despite still historically low rates."


Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the U.S. residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders.
(Source:http://news.xinhuanet.com)