Dayton
Business Journal...
Mortgage rates drop
again
by DBJ Staff
Friday, May 27, 2011
Mortgage rates across the country continue to decline as the slowing
economy fuels the slide in 30-year fixed-rate mortgage rate to the
lowest level of the year.
According to Freddie Mac, a 30-year fixed-rate mortgage averaged 4.6
percent this week, down from 4.61 percent last week.
A 15-year fixed-rate loan averaged 3.78 percent, down from 3.80 percent
a week ago.
A one-year adjustable-rate mortgage averaged 3.11 percent this week,
down from 3.15 percent last week.
“Fixed-rate mortgages eased slightly amid reports of slowing economic
activity,” says Freddie Mac (OTCBB:FMCC) Chief Economist Frank Nothaft.
“U.S. house prices indexes may be nearing a bottom soon.”
Low mortgage rates continue to attract borrowers. Applications from
existing homeowners seeking to refinance and potential buyers looking
for homes both rose last week, according to the Mortgage Bankers
Association.
A separate report this week showed new-home sales unexpectedly rose
more than 7 percent in April, to the highest level of the year.
New-home sales rose 7.3 percent from the previous month to an annual
pace of 323,000. The median price rose 4.6 percent from April 2010 to
$217,900.
Regionally, the biggest gain in month-over-month sales was in the West,
where purchases jumped 15.1 percent in April. In the South, new-home
sales rose 4.3 percent.
The market also tightened last month, with inventory falling to a
6.5-month supply, down from a 7.2-month supply in March.
And it appears that not as many foreclosures are on the market.
As previously reported, sales of foreclosed homes accounted for 28
percent of all U.S. residential sales in the first quarter, down from
2010’s first-quarter figure of 35.7 percent.
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