26 April – 2 May 2009 Interest Rate Information Milwaukee Area

Interesting that the paper posted the same date range this week as last week.  I wonder if the person in charge of this was on vacation.

Source: Real Estate Section Milwaukee Journal Sentinel 3 May 2009

30-year mortgages rates tie record low, Fraddie Mac says

Rates on 30-year mortgages tied a record low last week, spurring refinancing activity as the troubled housing market moves closer to possibly hitting the bottom, Freddie Mac said.  Average rates on 30-year fixed mortgages, the most popular loan among home buyers, slid to 4.78% from 4.8% the previous week, Freddie Mac said.  Last year at this time, the average rate was 6.06%.  The low of 4.78% was recorded the week of April 2.  Freddie Mac’s annual survey dates back to 1971.  Low mortgage rates have led to more refinancing activity since rates first fell dramatically in the winter.  Rates slid again after the Federal Reserve said in March that it would buy $1.2 trillion in mortgage-backed securities and $300 billion in long-term government debt, which traditionally influences rates on 30-year home loans.  Frank Nothaft, Freddie Mac’s chief economist, said the low rate means that a typical homeowner who refinances a $200,000 loan would save slightly more that $210 in monthly mortgage payments and more than $2500 a year.  Borrowers who refinance during this year’s first quarter reduced their mortgage payments by about $2.5 billion over the coming year, and half of borrowers who refinanced lowered their annual interest rate by at least 20%, according to Freddie Mac’s quarterly refinancing report.  With inventories apparently dropping and affordability rising, there are some positive signs,  Freddie Mac said.  It said the average rate on a 15-year fixed-rate mortgage was 4.48% last week, unchanged for the third straight week.