NEW YORK - fixed mortgage rates hit the lowest point of the year for the third consecutive week.
Freddie Mac said Thursday that the average rate on the 30-year loan fell to 4.60% of 4.61 per cent. It is the lowest point since mid-December. The average rate in the 15-year fixed mortgage, a popular refinancing option, slipped to 3.78% 3.80%. That marked the lowest level since late November.
Rates fell for six weeks in a row. They tend to follow the performance on the ticket of 10 years of the Treasury, which is dragged lower this week on concerns about the crisis of debt in Europe.
To make buying a home more attractive, the low mortgage rates, sales are still collapsing. Sales of new homes rose in April from the previous month, but are falling close to a quarter of last year, the Commerce Department said Tuesday. And the number of people in homes previously occupied purchase is well below what economists consider healthy, despite increased activity in April.
To calculate the average mortgage rates, Freddie Mac collects rates lenders across the country on Monday to Wednesday of each week. Rates fluctuate often significantly, even within a single day.
The average rate for a five-year rate mortgage increased from 3.48% to 3.41%. The loan of five years hit at 3.25% last month, the lowest rate on records dating back to January 2005.
Also, the average rate on a loan variables-one year decreased to 3.11% of 3.15%. Which was the level low in the last year.
The rates do not include the cost of the add-on, called points. A point is equal to 1% of the total amount of loan. The fee for the 30-year fixed average ready and ready fixed 15 years in the survey of Freddie Mac was 0.7 point. The average fee for the five-year arm and the arm of 1 year was 0.5 of a point.
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