April 29th, 2013
Mortgage rates are dropping across the board as spring progresses, including 30-year fixed mortgages, new Freddie Mac data reveals.
It was announced that for the week ending April 26, the average for 30-year fixed-rate mortgages (FRM) slid to 3.4 percent, falling 0.01 percent from the previous week.
The 3.4 percent average represents offers made to “prime” borrowers who are looking to lock into the low rate for the most commonly acquired mortgage plan.
The Freddie Mac report marked the fifth straight week during which mortgage rates have dropped, including 15-year mortgage rates, which have dropped to a new low of 2.61 percent.
The averages for hybrid adjustable mortgage rates (ARM), meanwhile, also dropped this week. Notably, five-year ARMs fell to 2.58 percent, down from 2.6 percent last week.
These incremental changes are crucial to improving consumer confidence across the board in an economy which is still shaky and holding on to a 7.7 percent unemployment rate.
Low mortgage rates are helping to promote recovery in the housing sector, as home prices are also on the rise. Perhaps most importantly, sales of both new and existing, pre-owned homes are both up so far in 2013.