Thursday, June 3, 2010

Mortgage rates remain at record lows

Loan delinquencies decline
The economy grew at a slower rate than originally reported in the first three months of the year. As a result, mortgage rates held at historic levels this week.

by Broderick Perkins
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Deadline Newsroom - Mortgage interest rates remained in record low territory for the week ending June 3, coming in at an average 4.79 percent for 30-year fixed-rate conforming mortgages (FRMs).

The June 3 average rate came with an average 0.8 point and was virtually unchanged from 4.78 percent last week, but down from 5.29 percent a year ago, according to the Freddie Mac Primary Mortgage Market Survey

The record low average 4.71 percent posted Dec. 3, 2009 was the lowest conforming loan rate since Freddie Mac began its weekly survey in 1971.

The 15-year FRM this week averaged 4.20 percent with an average 0.7 point, down from last week when it averaged 4.21 percent. The 15-year FRM has not been lower since Freddie Mac started tracking it in August 1991. A year ago at this time, the 15-year FRM averaged 4.79 percent, Freddie Mac reported.

"The economy grew at a slower rate than originally reported in the first three months of the year, according to the Bureau of Economic Analysis, which suggests inflation will remain tame in the near term," said Frank Nothaft, Freddie Mac vice president and chief economist.

"As a result, mortgage rates held at historic levels this week. In fact, rates on 15-year fixed-rate mortgages set another record low for the third week in a row," Nothaft said.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.94 percent this week, with an average 0.7 point, down from last week's 3.97 percent average. A year ago, the 5-year ARM averaged 4.85 percent.

The 1-year Treasury-indexed ARM averaged 3.95 percent this week with an average 0.7 point, unchanged from last week. The 1-year ARM has not been lower since the week ending May 27, 2004, which it averaged 3.87 percent. At this time last year, the 1-year ARM averaged 4.81 percent.

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Broderick Perkins, an award-winning consumer journalist, parlayed 30 years of old-school journalism into a digital real estate news service, the San Jose, CA-based DeadlineNews Group, including DeadlineNews.Com, a real estate news and consulting service and Web site, and the Deadline Newsroom, DeadlineNews.Com's news back shop.

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