Fixed Mortgage Rates Stay Low
July 1, 2011
Fixed mortgage rates continued to mostly hold steady this week, amid mixed economic reports and some signs of an improving housing market, Freddie Mac reports in its weekly mortgage market survey.
However, one rate was on the move: the five-year adjustable-rate mortgage took a dip, reaching a new record low at 3.22 percent.
Here’s a closer look at mortgage rates for the week:
▪ 30-year fixed-rate mortgage:averaged 4.51 percent, which is up slightly from last week’s 4.50 percent average. A year ago at this time, the 30-year rate averaged 4.58 percent.
▪ 15-year fixed-rate mortgage: averaged 3.69 percent, which is the same as last week’s average. Last year at this time, the 15-year rate averaged 4.04 percent.
▪ 5-year adjustable-rate mortgage:reached a new low of 3.22 percent, compared to last week’s 3.25 percent average--which was the previous record low. Last year at this time, the 5-year ARM averaged 3.79 percent.
▪ 1-year ARM: averaged 2.97 percent this week, down from last week’s 2.99 percent. A year ago at this time, the 1-year ARM averaged 3.80 percent.
Will Rates Stay Low?
The 30-year fixed-rate mortgage, the most popular choice among home buyers, has been hovering around 4.5 percent for the last four weeks. However, Nothaft expect the rate to soon edge slightly higher.
"Our expectation for the second half of the year is to see rates fluctuate between 4.5 percent and 5 percent,” says Nothaft. “We've been at the low end of that range recently. We think it's likely to climb to the upper part of the range by the end of the year."
Source: “Mortgage Rates Mixed; 30-Year Fixed Continues to Hold Steady,”Freddie Mac (June 30, 2011) and “Mortgage Interest Rates Rise Slightly,” Los Angeles Times (July 1, 2011) [No link available.]
Updated: May 27, 2022