Mortgage Rates Fall to Start the New Year

The first week of 2011 saw a drop in all four home mortgage rates.
Freddie Mac released its weekly Primary Mortgage Market Survey to show that both long- and short-term mortgages dropped for the week ending January 6, 2011.
The breakdown:
percent sign with a down arrow*30-year fixed-rate mortgage (FRM): Averaged 4.77 percent; down from 4.86 percent last week and 5.09 percent at this time last year.
*15-year FRM: Averaged 4.13 percent; down from 4.20 percent last week and 4.50 percent at this time last year.
*5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM): Averaged 3.75 percent; down from 3.77 percent last week and 4.44 percent a year ago.
*1-year Treasury-indexed ARM: Averaged 3.24 percent; down from 3.26 percent last week and 4.31 percent a year ago.
Mortgage rates had been falling for months, setting new record-lows as they went. While rates started to push higher toward the end of 2010, today’s rates are still lower than they were at the beginning of last year.
“Low mortgage rates are an important factor in housing affordability,” said Frank Nothaft, vice president and chief economist with Freddie Mac. “Mortgage rates began the new year a little lower this week and remained below those at the start of 2010, which should help aid the recovery in the housing market.”
Good start to the new year.