15-21 March 2009 Interest Rate Information Milwaukee Area

Source: Milwaukee Journal Sentinel Real Estate Section 15 March 2009

Job numbers push mortgage rates down

30-year fixed home loan drops to 5.03%

Associated Press  McLean, VA. – Rates on 30-year-fixed mortgages declined last week amid report of a weakening job market and easing concerns over inflation, Freddie Mac said.  The average rate on a 30-year fixed mortgage slipped to 5.03% last week from 5.15% the previous week.  A year ago, the 30-year fixed rate averaged 6.13%.  Mortgage rates had room to ease last week following news of a weeker jobs market, said Frank Nothaft, Freddie Mac’s chief economist.  This may slow consumer spending and keep inflation at bay, he said.  A week ago, initial jobless claims totaled 645,000.  Thursday, the Labor Department said the figure climbed to 654,000, while the number of people receiving benefits for more than a week increased by 193,000 to 5.3 million – the most on records dating to 1967.  Average rates for 30-year, fixed-rate mortgages hit a record low of 4.96% in January, a decline attributed to the Federal Reserve’s move to buy $500 billion in mortgage-backed securities to spur lending by banks.  “Given the recent historically low mortgage rates, homeowners have a strong incentive to try and refinance,” Nothaft said.

15-year down to 4.64%

Last week’s average rate on 15-year fixed-rate mortgage fell to 4.64% from 4.72%.  Last year at this time, the 15-year rate averaged 5.60%.  Average rates on five year, adjustable-rate mortgages declined to 4.99% last week from 5.08% the week before.  Rates on one-year adjustable-rate mortgages fell to 4.80% from 4.86%.  The rates do not include add-on fees know as points.  The nationwide fee averaged 0.7 point for 30-year and 15-year fixed rate mortgages.  The fee for five-year, adjustable-rate mortgages averaged 0.6 point and 0.5 point for one-year adjustable-rate mortgages.  Milwaukee-area borrowers in general prefer not to pay points and instead receive a higher interest rate.  Mortgage finance companies Fannie Mae and Freddie Mac, which were seized by the federal government in September, own or guarantee almost 31 million home loans worth $5.5 trillion.  That’s more than half of all U.S. home mortgages.