Mortgage Rates Stable, Applications Up

By:: Kara Johnson | June 17, 2010

Fixed-rate mortgages edged up slightly this week, but still remained near all-time lows, according to this morning’s weekly rate survey from Freddie Mac.

Both 30- and 15-year fixed rate mortgages were up three basis points, or 0.03 percentage points, from last week’s levels, with the 30-year loan averaging 4.75 percent and the 15-year loan averaging 4.20 percent. Both included an average 0.7 points paid and assume loan-to-value ratios of at least 80 percent.

Average rates on adjustable rate mortgages (ARMs), on the other hand, declined over the past week. The average initial rate on 5-year Treasury indexed ARMs fell to 3.89 percent, down from 3.92 percent last week. It’s the lowest the 5-year ARM has been since Freddie Mac began reporting them in 2005.

The 1-year Treasury indexed ARM fell to 3.82 percent, down from 3.92 percent last week. It’s the lowest that rate has been since May 2004. The 1-year rate assumes 0.6 points paid; the 5-year rate is based on 0.7 points; both are based on an 80 percent loan-to-value ratio or better.

Last week's average fixed-rates were the lowest ever reported by Freddie Mac for the 15-year loan and only a single basis point above the lowest for the 30-year loan.

Purchase applications end six-week decline

The continued low rates come on the heels of a reported surge in mortgage applications last week.

Mortgage applications jumped a seasonally adjusted 17.7 percent last week, including a 7.3 percent increase in mortgage applications for home purchases, according to the weekly Mortgage Bankers Association (MBA) report, released Wednesday.

Refinance applications were up 21.1 percent for the week, after a one-week decline the week before, and were at their highest level since May 2009. The increase in purchase applications was the first in six weeks.

Michael Fratantoni, MBA vice president of research and economics, said it’s unclear if the rise in purchase applications marks the beginning of a rebound following a period of decline after the conclusion of the homebuyer tax credit program at the end of April.

The Freddie Mac and MBA surveys both cover the previous week, but with different reporting periods. The MBA survey covers the week ending the previous Friday, while Freddie Mac’s reporting period is through Wednesday, the day before the survey is released.

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National Rates

Loan Type	Today	+/-
30 yr fixed	3.72
15 yr fixed	3.03
5/1 ARM	2.75

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