The current mortgage crisis appears to have bottomed for now but where are mortgage rates headed in the next several months?
Mortgages under 5% are back in bloom
With one of the key measures below the benchmark for the second week in a row, would-be home buyers face the best rates since the spring.
| 30 yr fixed mtg | 5.03% |
| 15 yr fixed mtg | 4.51% |
| 30 yr fixed jumbo mtg | 5.86% |
| 5/1 ARM | 4.38% |
| 5/1 jumbo ARM | 4.89% |
NEW YORK (CNNMoney.com) — The possibility of securing a mortgage rate below 5% has greatly improved in recent weeks, in a positive sign for would-be home buyers.
Home mortgage rates fell for the sixth straight week, according to two key measures, with one of them pointing to a sub-5% rate for the 30-year fixed loan for the second week in a row.
Freddie Mac’s (FRE, Fortune 500) weekly report said the 30-year rate slipped to 4.87% for the week ended Thursday, the lowest since May. According to the mortgage backer, last week’s rates stood at 4.94%.
Mortgage tracker Bankrate.com said the average 30-year fixed loan slipped to 5.22% from 5.25% the previous week. The 15-year fixed rate also fell, Bankrate said, to 4.6% from 4.64% the week before.
The 30-year rate is influenced by the benchmark 10-year note’s yield, which moves in the opposite direction of its price. Treasury prices have risen over the past week as $78 billion worth of auctions received above-average demand.
“Another disappointing employment report had investors questioning the strength and sustainability of the economic rebound,” the Bankrate report said. “The resulting uncertainty drove investors into the safety of government and mortgage-backed bonds.”
- Image by manarh via Flickr
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