honoluluadvertiser.com

Sponsored by:

Comment, blog & share photos

Log in | Become a member
The Honolulu Advertiser
Posted on: Friday, July 4, 2008

Mortgage rates ease this week

By Martin Crutsinger
Associated Press

WASHINGTON — Rates on 30-year mortgages, which had been rising for five straight weeks, posted a decline this week as signals from the Federal Reserve eased worries about imminent rate increases.

Mortgage company Freddie Mac reported yesterday that 30-year fixed-rate mortgages averaged 6.35 percent this week. That was down from 6.45 percent last week, which had been the highest level since September.

Other types of mortgages showed decreases this week as well, according to the Freddie Mac survey.

Rates on 15-year fixed-rate mortgages dropped to 5.92 percent, from 6.04 percent last week.

The five-year adjustable-rate mortgage fell to 5.78 percent, down from 5.99 percent. The rate on a one-year adjustable-rate mortgage declined to 5.17 percent, compared to 5.27 percent last week.

The housing market is facing numerous headwinds. Slumping prices are keeping potential buyers on the fence while rising mortgage defaults are dumping more homes on an already glutted market.

The mortgage rates do not include add-on fees known as points. The nationwide fee for 30-year, 15-year and one-year mortgages all averaged 0.6 point this week. The fee on five-year mortgages averaged 0.7 point.

A year ago, rates on 30-year mortgages stood at 6.63 percent, 15-year mortgage rates averaged 6.30 percent, five-year adjustable-rate mortgages were at 6.29 percent and one-year adjustable-rate mortgages averaged 5.71 percent.

• • •