Mortgage buyer Freddie Mac said Thursday that the rate on the bottom of 30 years remained at 3.53%. That is near the 3.31% reached in November, which was the lowest on record dating back to 1971.
The 15-year fixed rate mortgage remained at 2.77% for the second week. The record low is 2.63%.
One-year adjustable mortgage was the only rate change this week. It was an average 2.61%, maximum of 2.53 per cent last week.
Cheap mortgages give a helping hand to slowly improve the housing market.
An increase in sales helped push prices up, making consumers feel more wealthy and help to stimulate consumer spending. In addition, increased demand for housing stimulated construction of new housing.
Yet housing has a long way to go to achieve a full recovery. And many people is unable to take advantage of low rates, either because they are not eligible under stricter lending rules or that they do not have the money to meet the most demanding requirements of deposit.
To calculate the average mortgage rates, Freddie Mac surveys lenders across the country, from Monday to Wednesday of each week. The average does not include additional costs, called points, most borrowers need to pay to get the lowest rate. A point is equal to 1 percent of the loan amount.
The average fee for 30-year loans was 0.8 points, the same as last week. Fees for 15-year mortgages is 0.8 point, against 0.7 point last week. Fees for the rate year adjustable mortgages was 0.3 points from 0.4 points last week.
Freddie Mac said the average rate on five-year mortgage rates edged 2.64% this week, last week, of 2.63%. The tax remained the same at 0.6 point.
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