Mortgage Rate Inches Back Toward 5%
Mortgage rates mostly fell in the past week,
with 30-year fixed-rate mortgages edging toward 5%, according to
a survey by Freddie Mac.
Chief Economist Frank Nothaft noted home sales, especially for
lower-priced homes, have improved as the economy gets better.
Also, "with fixed mortgage rates staying near a record low, many
homeowners are taking the opportunity to refinance."
The 30-year fixed rate averaged 5.06% for the week ended
Thursday, down from last week's 5.09%, according to Freddie's
Primary Mortgage Market Survey. A year earlier, the rate was
4.96%. The 15-year fixed-rate mortgage rate fell to 4.45% from
4.5% and 4.65%, respectively.
Five-year Treasury-indexed hybrid adjustable-rate mortgages
averaged 4.32% this week, down from last week's 4.44% and the
prior year's 5.25%. One-year Treasury-indexed adjustable-rate
mortgages rose to 4.39% from 4.31%; the year-earlier average was
Meanwhile, mortgage applications rose a seasonally adjusted
14.3% during the week ending Jan. 8, compared with the week
before, the Mortgage Bankers Association said earlier this week.