Home Loan Rates Dropped Slightly in the Last Week

Home loan rates dropped slightly in the last week, according to Freddie Mac’s Primary Mortgage Market Survey,^® released today. According to the survey, 30-year fixed-rate mortgages averaged 5.32 percent with an average 0.7 point to obtain that rate. This shows mortgage rates down for the week ending July 2, 2009, compared with the prior week when the average showed at 5.42 percent. Last year at this time, the 30-year fixed rate home loans averaged 6.35 percent.

“Lower mortgage rates are helping to support the housing market,” said Frank Nothaft, Freddie Mac vice president and chief economist. The 30-year fixed-rate mortgage rate peaked this year during the week of June 11. Lower rates have led to a 7.2 percent increase in conventional mortgage applications for home purchases by the last full week of June, according to the Mortgage Bankers Association.

Nothaft also said: “The decline in house prices may be moderating as well. Home values fell at a monthly rate of 0.6 percent in April, representing the smallest decrease since June 2008, according to the S&P/Case-Shiller^® 20-city composite index. In addition, home prices rose in eight of the cities in April.”

For the full press release, visit Freddie Mac’s website.

Today or tomorrow would be an excellent time to lock your rate. Next week, there are large Treasury Note and Bond auctions scheduled. That is likely to drive down the bond market and accordingly drive rates back up.

To buy or sell a Flagstaff home, contact Team Heitland at RE/MAX Peak Properties!