Monday, November 26, 2007

Give Thanks For Lower Rates

by Broderick Perkins
© 2007 DeadlineNews.Com

Deadline Newsroom - Don't stop giving thanks just yet.

Home mortgage interest rates have been flat or falling since early October.

And, last week, Thanksgiving week, fixed interest rates on 30-year conforming loans averaged 6.20 percent.

Rates haven't been lower since the week ending May 10 this year, when the average was 6.15 percent.

Freddie Mac's Weekly Mortgage Market Survey said the 6.20 percent average interest rate on a 30-year fixed-rate mortgage was down from a week earlier when it averaged 6.24 percent.

Rates are virtually unchanged from a year ago.

Last year at this time, the 30-year fixed-rate averaged 6.18 percent for conforming loans.

What's more, the average interest rate on 15-year fixed-rate mortgages has been falling in lockstep with rates on 30-year loans.

Freddie Mac said 15-year mortgage rates fell from 6.08 percent on October 18 to 5.83 percent Thanksgiving week.

The last time the 15-year fixed-rate mortgage average was that low was Feb. 9, 2006.

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Frank Nothaft, Freddie Mac's vice president and chief economist said stability in both the producer price index and the consumer price index allowed interest rates to decline.

Freddie Mac said even more volatile adjustable rate mortgages or ARMS have been trending down as well.

The 5/1 year ARM came in at an average 5.88 percent Thanksgiving week, the lowest it's been since April 26.

The one-year ARM was 5.42 percent last week. The last time the interest rate on a one year ARM was that low was May 3, 2007.

© 2007 DeadlineNews.Com

Broderick Perkins, an award-winning consumer journalist of 30 years, is publisher and executive editor of San Jose, CA-based DeadlineNews.Com, a real estate news and consulting service, and the new Deadline Newsroom, DeadlineNews.Com's new backshop. In both cases, it's where all the news really hits home.

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