Rate on 30-year fixed mortgage rises to 3.98 pct. (AP)

By CHRISTOPHER S. RUGABER, AP Economics Writer Christopher S. Rugaber, Ap Economics Writer – Thu Jan 26, 5:39 pm ET

WASHINGTON – The average rate on the 30-year fixed mortgage rose this week for the first time this month, though it remained below 4 percent for the eighth straight week.

The low rates may be contributing to a slow turnaround in the depressed housing market. Still, many who can afford to buy or refinance a home have already done so.

Freddie Mac said Thursday the average rate on the 30-year fixed mortgage rose to 3.98 percent this week. That's up from 3.88 percent the previous week, which was the lowest level on record.

The average on the 15-year fixed mortgage also rose to 3.24 percent, from 3.17 percent the previous week. The 15-year mortgage hit a record low of 3.16 percent two weeks ago.

Mortgage rates are low because they tend to track the yield on the 10-year Treasury note, which fell below 2 percent this week.

For the past three months, the 30-year fixed mortgage rate has hovered near 4 percent. Historically low mortgage rates are among the signs that point to a pickup in the housing market this year.

Sales of previously occupied homes rose in December for a third straight month. Homebuilders are slightly more hopeful because more people are saying they might consider buying this year. And home construction picked up in the final quarter of last year.

Still, new homes fell in December, the Commerce Department said Thursday. About 302,000 new homes were sold last year, making 2011 the worst year for new home sales on records dating back to 1963.

High unemployment and scant wage gains have made it harder for many people to qualify for loans. Many don't want to sink money into a home that they fear could lose value over the next few years.

Builders are hopeful that the low rates could boost sales next year. Low mortgage rates were cited as a key reason the National Association of Home Builders survey of builder sentiment rose strongly in December and January.

To calculate the average rates, Freddie Mac surveys lenders across the country Monday through Wednesday of each week.

The average rates don't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.

The average fee for the 30-year loan dipped to 0.7 from 0.8; the average on the 15-year fixed mortgage was unchanged at 0.8.

For the five-year adjustable loan, the average rate rose to 2.85 percent from 2.82 percent. The average on the one-year adjustable loan was unchanged at 2.74 percent.

The average fee on the five-year adjustable loan rose was unchanged at 0.7; the average on the one-year adjustable-rate loan was unchanged at 0.6.

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Fixed mortgage rates hover near lows for 6th week (AP)

By DEREK KRAVITZ, AP Real Estate Writer Derek Kravitz, Ap Real Estate Writer – Thu Dec 8, 10:28 am ET

WASHINGTON – The average rate on the 30-year fixed mortgage hovered above its record low for a sixth straight week. But the super-low rates aren't providing a lift to the struggling housing market.

Freddie Mac said Thursday the rate on the 30-year home loan ticked down to 3.99 percent from 4 percent the previous week. It dropped to a record low of 3.94 nine weeks ago, according to the National Bureau of Economic Research.

The average rate on the 15-year fixed mortgage was edged down to 3.27 percent from 3.30 percent. Nine weeks ago, it too hit a record low of 3.26 percent.

Rates have been below 5 percent for all but two weeks this year. Yet this year could be the worst for home sales in 14 years.

Mortgage rates tend to follow the yield on 10-year Treasury note. The yield rose this week after investors, encouraged by central banks' joint effort to ease lending standards, shifted their money into stocks. Treasury yields rise when buying activity decreases.

Low mortgage rates haven't translated into more home sales. Sales of previously occupied homes are just slightly ahead of last year's dismal sales figures — the worst in 13 years. New-home sales appear headed to their worst year on records dating back half a century.

Mortgage applications rose nearly 13 percent last week but that's up from extremely low levels, according to the Mortgage Bankers Association.

High unemployment and scant wage gains have made it harder for many people to qualify for loans. Many Americans don't want to sink money into a home that could lose value over the next three to four years.

The low rates have caused a modest boom in refinancing last week. But since the average rate on the 30-year fixed loan has been below 5 percent for all but two weeks in the past year, most homeowners who can afford to refinance already have.

Some lenders say they are seeing an increase in applications through the Obama administration's refinancing program, which was broadened in October to allow up to 1 million more homeowners lower their monthly mortgage payments. But the Mortgage Bankers Association said such government-assisted loans account for only a small portion of refinancing applications.

The average rates don't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.

The average fee for the 30-year loan was unchanged at 0.7 and the fee on the 15-year fixed mortgage was unchanged at 0.8.

The average rate on the five-year adjustable loan rose to 2.93 percent from 2.90 percent. The average rate on the one-year adjustable loan also increased slightly to 2.80 percent from 2.78 percent.

The average fee on the five-year loan fell to 0.5 from 0.6 and the fee on the one-year adjustable loan was unchanged at 0.6.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country Monday through Wednesday of each week.

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Rate on 30-year fixed mortgage hovers at 4 pct. (AP)

By DEREK KRAVITZ, AP Real Estate Writer Derek Kravitz, Ap Real Estate Writer – Thu Dec 1, 10:06 am ET

WASHINGTON – The average rate on the 30-year fixed mortgage hovered above its record low for a fifth straight week. Despite the great opportunity, few have the means or stomach to buy or refinance in the depressed housing market.

Freddie Mac said Thursday the rate on the 30-year home loan rose slightly to 4 percent from 3.98 percent the week before. Eight weeks ago, it dropped to a record low of 3.94, according to the National Bureau of Economic Research.

The average rate on the 15-year fixed mortgage was unchanged at 3.30 percent. Eight weeks ago, it too hit a record low of 3.26 percent.

Rates have been below 5 percent for all but two weeks this year. Yet this year could be the worst for home sales in 14 years.

Mortgage rates track the yield on 10-year Treasury note. The yield rose this week after investors, encouraged by central banks' joint effort to ease lending standards, shifted their money into stocks. Treasury yields rise when buying activity decreases.

Low mortgage rates haven't translated into higher home sales. Mortgage applications have dropped over the past few weeks, according to the Mortgage Bankers Association.

High unemployment and scant wage gains have made it harder for many people to qualify for loans. Many Americans don't want to sink money into a home that could lose value over the next three to four years. And most homeowners who can afford to refinance already have.

The low rates have caused a modest boom in refinancing, but that benefit might be wearing off. Most people who can afford to refinance have already locked in rates below 5 percent.

The average rates don't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.

The average fee for the 30-year was unchanged at 0.7 and 15-year fixed mortgages rose from 0.7 to 0.8.

The average rate on the five-year adjustable loan ticked down to 2.90 percent from 2.91 percent. The average rate on the one-year adjustable loan also fell, declining to 2.78 percent from 2.79 percent.

The average fees on the five-year and one-year adjustable loans were unchanged from 0.6.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country Monday through Wednesday of each week.

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Rate on 30-year fixed mortgage falls to 4.11 pct. (AP)

WASHINGTON – The average rate on the 30-year fixed mortgage was nearly unchanged this week after rising sharply last week.

Freddie Mac said Thursday that the rate on the 30-year loan edged down to 4.11 percent from 4.12 percent last week. The week before, it fell to 3.94 percent. That's the lowest rate ever, according to the National Bureau of Economic Research.

The average rate on the 15-year fixed mortgage ticked up to 3.38 percent from 3.37 percent. It hit a record-low of 3.26 percent two weeks ago.

Low rates have done little to revive the lagging housing market, which has struggled with weak sales and declining prices. Many can't qualify for loans because their credit is weak or they can't afford a down-payment. Most of those who can afford to refinance already have.

The number of Americans who bought previously occupied homes fell in September and is on pace to match last year's dismal figures — the worst in 13 years.

The National Association of Realtors said Thursday that home sales fell 3 percent last month to a seasonally adjusted annual rate of 4.91 million homes. That's below the 6 million that economists say is consistent with a healthy housing market.

Sales of new homes are on pace to finish the year as the lowest on records dating back a half-century. Prices have been sliding because the market is flooded with houses being sold in foreclosure.

Many borrowers are unable to take advantage of the low rates because they can't meet banks' restrictive lending standards, or are unable to scrape together a down payment.

The low rates have caused a modest boom in refinancing, but that benefit might be wearing off. Most people who can afford to refinance have already locked in rates below 5 percent.

There have been a few modest signs of life for housing. Homebuilders started projects in September at the fastest pace in 17 months, the government said Wednesday. Most of the gain was driven by a surge in volatile apartment construction.

Still, single-family home construction, which represents nearly 70 percent of the market, increased only slightly. And building permits, a gauge of future construction, fell.

The Federal Reserve has been trying to reduce long-term rates by buying longer-dated Treasurys. Mortgage rates tend to track the yield on the 10-year Treasury note. Buying by the Fed pulls the yield lower.

The average rate on a 30-year fixed mortgage fell below 4 percent for the first time in history this month, just as the 10-year yield hit its own record low. Rates have edged up since then.

Rates have been below 5 percent for all but two weeks in the past year. Just five years ago they were closer to 6.5 percent.

The low rates being offered don't include extra fees, known as points, which many borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount. The average fees for the 30-year and 15-year loans were unchanged at 0.8 point.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country Monday through Wednesday of each week.

The average rate on a five-year adjustable-rate mortgage fell to 3.01 percent from 3.06 percent. It hit a record-low of 2.96 percent two weeks ago.

The average rate for the one-year adjustable-rate mortgage rose to 2.94 percent from 2.90 percent. It fell last month to 2.81 percent, the lowest on records dating back to 1984.

The average fees on the one-year and five-year loan were unchanged at 0.6 point.

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Rate on 30-year fixed mortgage rises to 4.12 pct. (AP)

By DEREK KRAVITZ, AP Real Estate Writer Derek Kravitz, Ap Real Estate Writer – Thu Oct 13, 11:37 am ET

WASHINGTON – The average rate on the 30-year fixed mortgage rose sharply this week after falling below 4 percent for the first time in history.

Freddie Mac said Thursday that the rate on the 30-year fixed loan rose to 4.12 percent. That's up from 3.94 percent last week, the lowest rate ever according to the National Bureau of Economic Research.

The average rate on the 15-year fixed mortgage, a popular refinancing option, increased to 3.37 percent from 3.26 percent, also a record.

Super low rates haven't been enough to lift the housing market, which has struggled in recent years with anemic sales and declining home prices.

Rates have been below 5 percent for all but two weeks in the past year. Just five years ago they were closer to 6.5 percent.

Yet sales of previously occupied homes this year are on track to be among the worst in 14 years. Sales of new homes are on pace to finish the year as the lowest on records dating back a half-century.

For many Americans, buying a house is too big a risk in this economy. Unemployment has been stuck near 9 percent for more than two years, raises are scarce and millions of foreclosures are forcing down home prices.

Others can't qualify for the historically low rates. Banks are also insisting on higher credit scores and 20 percent down payments for first-time buyers. Many repeat buyers have too little equity invested in their homes to qualify for loans.

Just half of Americans say they'll ever be able to save enough money to save for a down payment, according to a survey by the National Foundation for Credit Counseling.

Mortgage rates are low because they tend to track the yield on the 10-year Treasury note. The yield rose after government reported modest job gains in September and revisions to show more hiring in July and August.

Low mortgage rates have fueled a modest boom in refinancing. Still, most people who can afford to refinance have already locked in rates below 5 percent.

Economists say rates need to fall at least a full percentage point before it makes sense to refinance again. The reason is homeowners typically pay a few thousand dollars in closing costs when they refinance.

The low rates being offered also don't include extra fees, known as points, which many borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount. The average fees for the 30-year loan stayed at 0.8 point. The 15-year fixed loan rose to 0.8.

And more Americans refinancing their mortgages are not likely to provide much benefit to the economy. At least 25 percent of U.S. homeowners have little or no equity in their homes. So unlike in the past, people who refinance now don't tend to draw money out for home-improvement projects or other big expenditures that would contribute to economic growth.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country Monday through Wednesday of each week.

The average rate on a five-year adjustable-rate mortgage increased to 3.06 percent from 2.96 percent. That followed six straight weeks of record lows for that loan.

The average rate for the one-year adjustable-rate mortgage fell to 2.90 percent from 2.95 percent. Its average of 2.81 percent last month was the lowest on records going back to 1984.

The average fees on the five-year loan stayed at 0.6; and the one-year rose to 0.6.

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Fixed mortgage rates stay flat, just above lows (AP)

WASHINGTON – Fixed mortgages were mostly flat this week after hitting their lowest levels in decades. But few Americans are capitalizing on them.

The average rate on the 30-year fixed mortgage stayed at 4.22 percent for the second straight week, Freddie Mac said Thursday. The rate hit 4.15 percent two weeks ago, the lowest level on records dating to 1971.

The average rate on the 15-year fixed mortgage, a popular refinancing option, fell to 3.39 percent from 3.44 percent. Two weeks ago, it reached 3.36 — the lowest rate on records dating to 1991 and likely the lowest ever, according to economists.

Mortgage rates typically track the yield on the 10-year Treasury note. Yields rose this week as investors shifted money back to a more stable stock market.

Low rates have done little to revive a weak housing market.

Mortgage applications to purchase a home fell to 15-year lows last month, the Mortgage Bankers Association said. High unemployment, falling home prices and weaker economy have left many people hesitant to buy a home.

Others can't qualify for the low rates. Their credit is too weak to meet banks' tighter lending standards. Many banks are requiring larger down payments. Some potential homebuyers are stuck in homes that are worth less than the existing mortgage.

Over the past year, the average rate on the 30-year fixed mortgage has been below 5 percent for all but two weeks. Yet sales remain unhealthy.

Sales of new homes are on pace to finish the year as the lowest on records dating back to 1963. The pace of re-sales is shaping up to be the worst in 14 years.

Home prices haven't fared much better. Since the peak of the housing boom in 2007, homes have lost nearly a third of their value. And they are expected to fall another 5 to 10 percent by year's end, analysts say.

The weak housing market has been a drag on the economy. Without more jobs, the housing market is unlikely to recover any time soon.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country Monday through Wednesday of each week.

The average rate on a five-year adjustable-rate mortgage fell to 2.96 percent. That's the lowest rate on records dating to January 2005. It was the fifth straight week of record lows for this type of loan.

The average rate for the one-year adjustable-rate mortgage fell to 2.89 percent. Its average of 2.86 percent two weeks ago was the lowest on records going back to 1984.

The rates do not include extra fees known as points. One point is equal to 1 percent of the total loan amount.

The average fees for the 30-year held steady at 0.7 point. The 15-year fixed loans and 5-year and one-year adjustable rate loans were all at 0.6 point.

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Fixed mortgage rates rise from decades lows (AP)

WASHINGTON – Fixed mortgage rates edged up this week from their lowest levels in decades. But few have been able to capitalize on them.

The average rate on the 30-year fixed mortgage rose to 4.22 percent, Freddie Mac said Thursday. That's up from 4.15 percent last week, the lowest level on records dating to 1971.

The average rate on the 15-year fixed mortgage, a popular refinancing option, rose to 3.44 percent. Last week it fell to 3.36 percent,

Mortgage rates typically track the yield on the 10-year Treasury note. Yields rose this week as investors shifted money back into stocks. The stock markets were more stable after a turbulent stretch. Bond yields rise as their prices fall.

Still, low rates have not been enough to revive the weak housing market. Mortgage applications to purchase a home fell last week to a 15-year low, according to the Mortgage Bankers Association.

High unemployment and fear that the country may be on the verge of another recession have left many people hesitant to buy a home.

Others can't qualify for the low rates. Their credit is too weak to meet banks' tighter lending standards. Many banks are requiring larger down payments. Some potential homebuyers are stuck in homes that are worth less than the existing mortgage.

Over the past year, the average rate on the 30-year fixed mortgage has been below 5 percent for all but two weeks. Yet sales remain unhealthy.

Sales of new homes are on pace to finish the year as the lowest on records dating back to 1963. The pace of re-sales is shaping up to be the worst in 14 years.

Home prices haven't fared much better. Since the peak of the housing boom in 2007, homes have lost nearly a third of their value.

The weak housing market has been a drag on the economy. And without more jobs, the housing market is unlikely to recover any time soon.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country Monday through Wednesday of each week.

The average rate on a five-year adjustable-rate mortgage fell to 3.07 percent. That's the lowest rate on records dating to January 2005. It was the fourth straight week of record lows for this type of loan.

The average rate for the one-year adjustable-rate mortgage rose to 2.93 from 2.86 percent. Last week's average was the lowest on records going back to 1984.

The rates do not include extra fees known as points. One point is equal to 1 percent of the total loan amount.

The average fees for the 30-year, 15-year and 5-year loans held steady at 0.7 point, 0.6 point and 0.5 point, respectively. The average fee on the one-year adjustable mortgage fell to 0.5 point from 0.7 point.

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Fixed mortgage rates mostly unchanged last week (AP)

By MARTIN CRUTSINGER, AP Economics Writer Martin Crutsinger, Ap Economics Writer – Thu Jul 28, 3:10 pm ET

WASHINGTON – Fixed mortgage rates were mostly unchanged this week as credit markets showed little reaction to Washington's impasse over raising the federal government's borrowing limit.

Freddie Mac reported Thursday that the average rate on the 30-year fixed loan ticked up to 4.55 percent from 4.52 percent a week ago. That's slightly above this year's low of 4.49 percent.

The average rate on the 15-year fixed loan was unchanged at 3.66 percent, just above the yearly low of 3.65 percent.

Mortgage rates typically track the yield on the 10-year Treasury note. Yields have been stable, even though Congress and the Obama administration are days away from a potential default on the government's debt.

Low mortgage rates and depressed home prices have done little to revive the struggling housing market. Many people simply can't take advantage of the historically low rates because of tighter lending standards and bigger required down payments.

Other potential homebuyers are holding off, concerned that housing prices will continue to fall.

Few economists expect the housing market to rebound before 2013.

To calculate average mortgage rates, Freddie Mac collects rates from lenders across the country on Monday through Wednesday of each week.

The average rate on a five-year adjustable-rate mortgage edged down to 3.25 percent this week from 3.27 percent last week. The 3.25 percent was close to the record low of 3.22 set last month for this mortgage. The records go back to 2005.

The average rate for one-year adjustable-rate loans dipped to 2.95 percent, from 2.97 percent last week. The 2.95 percent matched the record low set two weeks ago.

The rates do not include extra fees known as points. One point is equal to 1 percent of the total loan amount.

The average fee for the 30-year loan was 0.8 point, up from 0.7 last week. Average fees for the 15-year fixed loan and the one-year ARM were unchanged at 0.7 and 0.5, respectively. The average fee for the five-year ARM rose to 0.6 from 0.5 last week.

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Fixed mortgage rates inch up from yearly lows (AP)

WASHINGTON – Fixed mortgage rates were mostly unchanged this week, inching up from their yearly lows.

The average rate on the 30-year fixed loan ticked up to 4.52 percent from 4.51 percent a week ago, Freddie Mac said Thursday. It reached its yearly low of 4.49 percent a month ago.

The average rate on the 15-year fixed loan, popular for refinancing, nudged up to 3.66 percent from 3.65 percent, its low point for the year.

Mortgage rates typically track the yield on the 10-year Treasury note. Yields fall when prices rise. In the past week, yields have been stable even though Congress and the Obama administration are less than two weeks away from a possible default on the government's debt.

Negotiations to raise the government's $14.3 trillion borrowing limit have yet to produce a deal that can pass both chambers of Congress, although a bipartisan Senate plan has drawn support from President Obama.

Low mortgage rates and depressed home prices have done little to revive the struggling housing market. Many people simply can't take advantage of the historically low rates because of tighter lending standards and bigger required down payments.

Other potential homebuyers are holding off, concerned that housing prices will continue to fall.

Few economists expect the housing market to rebound before 2013.

To calculate average mortgage rates, Freddie Mac collects rates from lenders across the country on Monday through Wednesday of each week. Rates often fluctuate significantly, even within a single day.

The average rate on a five-year adjustable-rate mortgage edged down to 3.27 percent from 3.29 percent last week. Three weeks ago, it hit 3.25 percent, its lowest level on records dating back to 2005. The average rate on the one-year adjustable loan rose to 2.97 percent from 2.95 percent. It hit a record low last week.

The rates do not include extra fees known as points. One point is equal to 1 percent of the total loan amount.

The average fees for the 30-year loans were unchanged at 0.7, according to Freddie Mac's survey. Average fees for the 15-year fixed loan rose to 0.7. Fees for the five-year and one-year ARMs were 0.5.

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Fixed mortgage rates fall toward 2011 lows (AP)

WASHINGTON – Fixed mortgage rates fell this week, and the rate on the 15-year loan dropped to its lowest point of the year.

The average rate on the 30-year loan decreased to 4.51 percent from 4.60 percent a week ago, Freddie Mac said Thursday. It reached its yearly low a month ago, at 4.49 percent.

The average rate on the 15-year fixed mortgage, popular for refinancing, fell to 3.65 percent from 3.75 percent. Its previous low this year was 3.67 percent, reached three weeks ago.

Rates typically track the yield on the 10-year Treasury note. Yields fell sharply last week after dismal jobs data pushed investors into the safety of government bonds. Yields fall as prices rise.

Low mortgage rates and depressed home values have done little to revive the struggling housing market. Many people can't take advantage of the low rates because of tighter lending standards and higher downpayment requirements. Lenders are cautious because the weak economy and high unemployment make it more likely that some borrowers will default.

Other potential homebuyers are holding off, concerned that housing prices will continue to fall.

Few economists expect the housing market to rebound before 2013.

To calculate average mortgage rates, Freddie Mac collects rates from lenders across the country on Monday through Wednesday of each week. Rates often fluctuate significantly, even within a single day.

The average rate on a five-year adjustable-rate mortgage edged down to 3.29 percent from 3.30 percent last week. Two weeks ago, it hit 3.25 percent, its lowest level on records dating back to 2005. The average rate on the one-year adjustable loan fell to 2.95 percent, a record low, from 3.01 percent.

The rates do not include extra fees known as points. One point is equal to 1 percent of the total loan amount.

The average fees for the 30-year loans were unchanged at 0.7, according to Freddie Mac's survey. Average fees for the 15-year fixed loan and the five-year ARM were 0.6. The average fees for the one-year ARM fell to 0.5.

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Rate on 30-year fixed mortgage rises to 4.60 pct. (AP)

WASHINGTON – Fixed mortgage rates rose this week by the most in four months.

The average rate on the 30-year loan increased to 4.60 percent, up from 4.51 percent a week ago, Freddie Mac said Thursday. It hit its lowest level of the year three weeks ago, at 4.49 percent.

The average rate on the 15-year fixed mortgage, a popular refinancing option, rose to 3.75 percent. It reached its low point of the year two weeks ago, at 3.67 percent.

Rates typically track the yield on the 10-year Treasury note, which has been rising. And mortgage rates could rise further now that the Federal Reserve's $600 billion bond buying program has ended.

The Fed has purchased around $75 billion worth of bonds each month since November. That drove the yield on the 10-year Treasury note lower than 3 percent this spring. As a result, rates on mortgages and other loans also fell.

Still, low mortgage rates and plummeting home prices have done little to boost the troubled housing market. Tougher lending standards and bigger down payment requirements have prevented many people from taking advantage of the ultra-low rates. Many people who can qualify are holding off, worried that prices have yet to bottom out.

Most economists say home prices will keep falling through the rest of the year. Many forecasts don't anticipate a rebound in prices until at least 2013.

To calculate average mortgage rates, Freddie Mac collects rates from lenders across the country on Monday through Wednesday of each week. Rates often fluctuate significantly, even within a single day.

The average rate on a five-year adjustable-rate mortgage rose from 3.25 to 3.30 percent. Last week's rate was the lowest on records dating back to 2005. The average rate on a one-year adjustable-rate loan rose to 3.01 percent, just above the record low of 2.95 percent.

The rates do not include extra fees known as points. One point is equal to 1 percent of the total loan amount.

The average fees for the 30-year and 15-year fixed loans were 0.7, according to Freddie Mac's survey. The average fees for the five-year and one-year ARM were 0.6.

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Fixed mortgage rates flat, hover near yearly low (AP)

WASHINGTON – Fixed mortgage rates were mostly unchanged this week, hovering near yearly lows.

The average rate on the 30-year loan held steady at 4.50 percent, Freddie Mac said Thursday. It hit 4.49 percent two weeks ago, the lowest level this year. The average rate on the 15-year fixed mortgage, popular for refinancing, inched up to 3.69 percent. Last week it reached a yearly low of 3.67 percent.

Rates typically track the yield on the 10-year Treasury note. That yield has been dropping in recent weeks based on weak data that points to a slower economy.

Low mortgage rates and falling home prices have done little to boost the troubled housing markets. Tougher lending standards and bigger down payment requirements have prevented many people from taking advantage of the ultra-low rates. Many people who can qualify are holding off, worried that prices have yet to bottom out.

Fewer people purchased previously occupied homes in May. Sales fell to their lowest level of the year. Since the housing market went bust in 2006, sales have fallen in four of the past five years and hit a 13-year low last year.

New-home sales fell last month to a seasonally adjusted annual rate of 319,000 homes. That's far below the 700,000 homes per year that economists say must be sold to sustain a healthy housing market.

Federal Reserve Chairman Ben Bernanke said Wednesday that the housing market is dragging down the broader economy. For the market to recover, he said foreclosures must be cleared from the pipeline of homes for sale.

Most economists say home prices will keep falling through the rest of the year. Many forecasts don't anticipate a rebound in prices until at least 2013.

To calculate average mortgage rates, Freddie Mac collects rates from lenders across the country on Monday through Wednesday of each week. Rates often fluctuate significantly, even within a single day.

The average rate on a five-year adjustable rate mortgage fell from 3.27 percent to 3.25 percent, the lowest rate on records dating back to 2005. The average rate on a one-year adjustable-rate loan rose to 2.99 percent, slightly above the record low of 2.95 percent.

The rates do not include the extra fees known as points. One point is equal to 1 percent of the total loan amount.

The average fees rose to 0.8 percent from 0.7 percent for the 30-year fixed loan, according to Freddie Mac's survey. They were flat at 0.7 percent for the 15-year fixed loan, the survey found. The average fees for the five-year and one-year ARM were unchanged at 0.6 percent and 0.5 percent, respectively.

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Fixed mortgage rates drop for 8th straight week (AP)

By DEREK KRAVITZ, AP Real Estate Writer Derek Kravitz, Ap Real Estate Writer – Thu Jun 9, 11:16 am ET

WASHINGTON – Fixed mortgage rates have dropped for an eighth straight week, but the low rates have done little to boost the depressed housing market.

The average rate on the 30-year loan fell to 4.49 percent from 4.55 percent, Freddie Mac said Thursday. The average rate on the 15-year fixed mortgage, a popular refinance option, slipped to 3.68 percent from 3.74 percent. Both are lows for the year.

Rates tend to track the yield on the 10-year Treasury note. The 10-year yield has been dropping as investors have snapped up Treasurys over fears that the economy is slowing.

Most people can't take advantage of the low mortgage rates because they can't meet tougher lending requirements. And many who could afford to refinance likely did so last year, when rates fell to their lowest levels in decades.

Sales of new and previously occupied homes rose in April. But sales are well below healthy levels. That's because foreclosures have pushed prices down. And many potential buyers are holding off, worried that home prices have yet to hit bottom.

Prices fell in the first three months of this year to the lowest levels since before the housing bust. Prices are expected to keep falling through the year, by as much as 10 percent, economists say.

To calculate average mortgage rates, Freddie Mac collects rates from lenders across the country on Monday through Wednesday of each week. Rates often fluctuate significantly, even within a single day.

The average rate on a five-year adjustable-rate mortgage fell to 3.28 percent. The five-year adjustable rate loan hit 3.25 percent in November, the lowest rate on records dating back to 2005.

The average rate on a one-year adjustable-rate loan fell to 2.95 percent. That's the lowest on records going back to 1986.

The rates do not include add-on fees, known as points. One point is equal to 1 percent of the total loan amount. The average fee was 0.7 for both the 30-year and 15-year fixed loans in Freddie Mac's survey. The average fee for the five-year ARM and the 1-year ARM was 0.5 point.

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Fixed mortgage rates drops for 7th straight week (AP)

By DEREK KRAVITZ, AP Real Estate Writer Derek Kravitz, Ap Real Estate Writer – Thu Jun 2, 11:11 am ET

WASHINGTON – Fixed mortgage rates slid for the seventh consecutive week, but the lowest rates of the year have done little to lift the struggling housing market.

Freddie Mac says the average rate on the 30-year loan fell to 4.55 percent from 4.60 percent. The average rate on the 15-year fixed mortgage, a popular refinance option, slipped to 3.74 percent from 3.78 percent. Both are lows for the year.

Rates tend to track the yield on the 10-year Treasury note, which has dropped over fears that higher energy prices could slow economic growth this year.

Most people are unable to take advantage of the lowest mortgage rates because they can't meet tougher lending requirements. And those who could afford to refinance likely did so last year, when rates fell to the lowest levels in decades.

Sales of new and previously occupied homes rose in April. But sales are well below healthy levels. Waves of foreclosures have pushed prices down. Many would-be buyers are holding off, worried that home prices have yet to hit bottom.

Home prices fell in the first three months of this year to the lowest levels since before the housing bust. Prices are expected to keep falling until the glut of foreclosures for sale is reduced, companies start hiring in greater force, banks ease lending rules and more people think it makes sense again to buy a house. In some markets, that could take years.

To calculate average mortgage rates, Freddie Mac collects rates from lenders across the country on Monday through Wednesday of each week. Rates often fluctuate significantly, even within a single day.

The average rate on a five-year adjustable-rate mortgage stayed flat at 3.41 percent. The five-year adjustable rate loan hit 3.25 percent in April, the lowest rate on records dating back to 2005.

The average rate on a one-year adjustable-rate loan rose slightly to 3.13 percent.

The rates do not include add-on fees, known as points. One point is equal to 1 percent of the total loan amount. The average fee for the 30-year fixed loan in Freddie Mac's survey was 0.6 and it was 0.7 for the 15-year fixed loan. The average fee for the five-year ARM and the 1-year ARM was 0.6 point.

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Fixed mortgage rates fall to 2011 lows (AP)

NEW YORK – Fixed mortgage rates hit the lowest point of the year for the third straight week.

Freddie Mac said Thursday the average rate on the 30-year loan fell to 4.60 percent from 4.61 percent. That's the lowest point since mid-December. The average rate on the 15-year fixed mortgage, a popular refinance option, slipped to 3.78 percent from 3.80 percent. That marked the lowest level since late November.

Rates have fallen for six weeks in a row. They tend to track the yield on the 10-year Treasury note, which crept lower this week on worries over Europe's ongoing debt crisis.

While low mortgage rates make purchasing a home more attractive, sales are still slumping. Sales of new homes rose in April from the previous month, but are down almost a quarter from last year, the Commerce Department said Tuesday. And the number of people buying previously occupied homes is well below what economists consider healthy, despite an uptick in activity in April.

To calculate average mortgage rates, Freddie Mac collects rates from lenders across the country on Monday through Wednesday of each week. Rates often fluctuate significantly, even within a single day.

The average rate on a five-year adjustable-rate mortgage fell to 3.41 percent from 3.48 percent. The five-year adjustable-rate loan hit 3.25 percent last month, the lowest rate on records dating back to January 2005.

The average rate on a one-year adjustable-rate loan also decreased to 3.11 percent from 3.15 percent. That matched the lowest level in the last year.

The rates do not include add-on fees, known as points. One point is equal to 1 percent of the total loan amount. The average fee for the 30-year fixed loan and 15-year fixed loan in Freddie Mac's survey was 0.7 point. The average fee for the five-year ARM and the 1-year ARM was 0.5 point.

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Summary Box: Fixed mortgage rates decline again (AP)

RATES FALL AGAIN: Freddie Mac said fixed mortgage rates fell for the fifth straight week this week and hit their lowest levels of the year.

NEW YEARLY LOWS: The average rate on the 30-year loan fell to 4.61 percent from 4.63. That's the lowest level since mid-December. The rate on the 15-year fixed mortgage dipped to 3.80 percent from 3.82 percent, the lowest point since late November.

REFINANCINGS GET BOOST: Low rates spurred more borrowers to apply for a refinance, and that activity is at the highest level since the second week of December.

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Fixed mortgage rates touch new lows for 2011 (AP)

NEW YORK – Fixed mortgage rates fell this week to the lowest point of the year, offering incentive for homeowners to save money by refinancing their loans.

Freddie Mac said Thursday that the average rate on the 30-year loan fell to 4.61 percent. That's down from 4.63 percent and the lowest level since mid-December.

The average rate on the 15-year fixed mortgage, a popular refinance option, slipped to 3.80 percent from 3.82 percent. That marked the lowest point since late November.

Rates track the yield on the 10-year Treasury note, which fell to the lowest level of the year this week.

Low rates haven't been enough to jumpstart the weak housing market. Fewer people bought previously occupied homes in April, the National Association of Realtors said Thursday. Sales fell to a seasonally adjusted annual rate of 5.05 million units, far below the 6 million homes a year that economists consider a healthy market.

However, the number of borrowers looking to refinance is now at the highest level since the second week of December, according to the Mortgage Bankers Association. Refinance activity has increased 33 percent over the last five weeks, mirroring the steady decline in rates.

Despite the gains, refinancing is only at half the level it reached in the fall of last year when mortgage rates fell to record lows. The rate on the 30-year home loan hit a four-decade low of 4.17 percent in November. The 15-year mortgage rate reached 3.57 percent that same month, the lowest level on records dating back to 1991.

"We're not seeing a (refinancing) boom by any means," said Pava Leyrer, president of Heritage National Mortgage in Michigan.

She said many borrowers refinanced when rates were lower last year. Others don't have enough equity in their homes because values have fallen too much or their credit isn't polished enough for them to qualify.

And those who may shave off a percentage point or more from their mortgage rate face higher closing costs this year because of a recent fee increases for appraisals, title insurance and other costs. That could offset any savings from an interest rate reduction.

"If it's purely a rate decision, the difference needs to be one and a half percentage points," said Ritch Workman, co-owner of Workman Mortgage in Melbourne, Fla.

Workman has noticed an uptick in applications for purchase mortgages. Would-be buyers are taking advantage of the combination of low rates and declining home prices.

To calculate average mortgage rates, Freddie Mac collects rates from lenders across the country on Monday through Wednesday of each week. Rates often fluctuate significantly, even within a single day.

The average rate on a five-year adjustable-rate mortgage rose to 3.48 percent from 3.41 percent. The five-year adjustable-rate loan hit 3.25 percent last month, the lowest rate on records dating back to January 2005.

The average rate on a one-year adjustable-rate loan also increased to 3.15 percent from 3.11 percent, the lowest level for the rate in the last year.

The rates do not include add-on fees, known as points. One point is equal to 1 percent of the total loan amount. The average fee for the 30-year fixed loan and 15-year fixed loan in Freddie Mac's survey was 0.7 point. The average fee for the five-year ARM and the 1-year ARM was 0.6 point.

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Rate on 30-year fixed mortgage falls to 4.71 pct. (AP)

NEW YORK – Fixed mortgage rates dipped to the lowest level of the year this week. The third straight weekly decline comes at the start of the peak buying season.

Freddie Mac said Thursday the average rate on the 30-year loan fell to 4.71 percent from 4.78 percent the previous week. That matched this year's low reached in January. But it is above the 40-year low of 4.17 percent hit in November.

The average rate on the 15-year fixed mortgage slipped to 3.89 percent from 3.97 percent. It reached 3.57 percent in November, the lowest level on records dating back to 1991.

Mortgage rates tend to track the yield on the 10-year Treasury note, which fell this week after report this week showed slower growth last month in the service sector, which employs nearly 90 percent of the U.S work force. That bolsters the case for the Federal Reserve to maintain its policy of keeping interest rates low to fuel the economy.

Low rates have done little to boost home sales, which are far below the level that economists consider healthy. Still, most sales occur between April and August.

Many homebuilders reported a drop in sales in the first three months of the year along with a decline in orders, a sign of future activity. Beazer Homes USA Inc. said Tuesday it booked a $54.6 million loss for its fiscal second quarter as new orders and closings fell.

To calculate average mortgage rates, Freddie Mac collects rates from lenders across the country on Monday through Wednesday of each week. Rates often fluctuate significantly, even within a single day.

The average rate on a five-year adjustable-rate mortgage fell to 3.47 percent from 3.51 percent. The five-year adjustable-rate loan hit 3.25 percent last month, the lowest rate on records dating back to January 2005.

The average rate on a one-year adjustable-rate loan fell to 3.14 percent from 3.15 percent. That marked the lowest level for the rate on the 1-year ARM in the last year.

The rates do not include add-on fees, known as points. One point is equal to 1 percent of the total loan amount. The average fee for the 30-year fixed loan and 15-year fixed loan in Freddie Mac's survey was 0.7 point. The average fee for the five-year ARM and the 1-year ARM was 0.6 point.

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Summary Box: Fixed mortgage rates fall this week (AP)

RATES DIP THIS WEEK: Freddie Mac said the average rate on the 30-year loan fell to 4.78 percent from 4.80 percent the previous week. It hit a 40-year low of 4.17 percent in November.

15-YEAR RATE UNDER 4 PERCENT: The average rate on the 15-year fixed mortgage slipped to 3.97 percent from 4.02 percent. It reached 3.57 percent in November, the lowest level on records dating back to 1991.

HOUSING STILL HURTING: Four homebuilders reported weaker sales in the most recent quarter. And while more Americans signed contracts to buy homes last month, it wasn't enough to be considered a healthy amount of activity.

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Summary Box: Fixed mortgage rates fall this week (AP)

RATES DIP THIS WEEK: Freddie Mac said the average rate on the 30-year loan fell to 4.78 percent from 4.80 percent the previous week. It hit a 40-year low of 4.17 percent in November.

15-YEAR RATE UNDER 4 PERCENT: The average rate on the 15-year fixed mortgage slipped to 3.97 percent from 4.02 percent. It reached 3.57 percent in November, the lowest level on records dating back to 1991.

HOUSING STILL HURTING: Four homebuilders reported weaker sales in the most recent quarter. And while more Americans signed contracts to buy homes last month, it wasn't enough to be considered a healthy amount of activity.

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