12 – 18 April 2009 Interest Rate Information Milwaukee Area

Source: Real Estate Section Milwaukee Journal Sentinel 12 April 2009

From the front page of the Real Estate Section Milwaukee Journal Sentinel 12 April 2009

30-year rate edges higher

Rates on 30-year mortgages inched higher after two straight weeks of record lows, but still remained at attractive levels for borrowers looking to refinance their home loans. Mortgage finance giant Freddie Mac said that average rates on 30-year fixed-rate mortgages rose to 4.87%, which was the lowest since Freddie Mac’s survey started in 1971. Low rates have sparked a surge in refinancing activity, with nearly 80% of new home-loan application coming from borrowers seeking to refinance. Freddie Mac’s Sibling company, Fannie Mae, refinanced $77 billion in home loans last month, nearly double February’s level. Frank Nothaft, Freddie Mac’s chief economist, said in a statement that low mortgage rates “should keep homeowners affordability at record levels.” Lenders, however, have tightened their standards dramatically over the past year, so the best rates are available to only those with solid credit. The rates do not include add-on fees known as points. The nationwide fee averaged 0.7 point last week for 30-year fixed-rate mortgages in Freddie Mac’s survey. Borrowers in the Milwaukee area generally prefer not to pay points and instead receive a somewhat higher interest rate.