Thursday, January 14, 2010
by Broderick Perkins
© 2009 DeadlineNews.Com
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Deadline Newsroom - The average interest rate on a 30-year, fixed-rate mortgage (FRM) came in at 5.06 percent, the week ending Jan. 14, with an average 0.7 point, down a few ticks from 5.09 percent last week, according to Freddie Mac's weekly Primary Mortgage Market Survey (PMMS).
Last year, at this time, the 30-year FRM average was 4.96 percent.
The 15-year FRM this week was also down, averaging 4.45 percent with 0.6 point, down from 4.50 percent last week. A year ago the 15-year FRM averaged 5.25 percent.
The lower rates continued to fuel refinance activity in the housing market. For the past several months, 75 percent of conventional mortgage applications were for refinance transactions, according the Mortgage Bankers Association.
"Refinance applications continue to rule the day as rates dipped … and consumers jumped on them," said Nancy Osborne, chief operating officer of Erate.com, a Santa Clara, CA-based financial information publisher and interest rate tracker.
"Interest rates will not remain at historic lows forever, so borrowers better grab them and take advantage while they can," she added.
Meanwhile, ARMs were mixed.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.32 percent the week ending Jan. 14, with an average 0.6 point, down from last week's 4.44 percent average.
The 1-year Treasury-indexed ARM came in at an average 4.39 percent this week with an average 0.5 point, up from last week's 4.31 percent average, according to Freddie Mac.
A year ago the 5-year ARM averaged 5.25 percent. The 1-year ARM averaged 4.89 percent this time last year.
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