Thursday, May 10, 2007

Interest Rates Going Down

Average mortgage rates declined in the week ending Thursday, April 26, according to Freddie Mac. 30-year fixed-rate mortgages carried an interest of 6.16%, a slight drop from last week’s 6.17%. Current rates are approaching the lowest level for the year so far, 6.14%, recorded in early March. 15-year fixed-rate mortgages also decreased to 5.87%, down from 5.89 a week earlier. 1-year adjustable-rate loans had an interest rate of 5.43%, slightly lower than last week’s 5.45%. The 5-year hybrid ARM dropped to 5.88% from 5.92. Freddie Mac’s chief economist Frank Nothaft attributed the decline to weaker existing home sales in March and lower consumer confidence in April.

Rates are way below year-ago levels, when 30-year fixed-rate mortgages carried an average interest of 6.58%, 15-year mortgages were at 6.21%, 1-year adjustable-rate mortgages had a rate of 5.68% and 5-year hybrid ARMs averaged 6.21%.

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