Freddie Mac says mortgage rates fall to 5.07%

Posted April 15, 2010 at 9:12 a.m.

Dow Jones Newswires | U.S. mortgage rates fell for the first time in a month, pushed lower by investor demand for debt backed by home loans. Rates for 30-year fixed loans fell to 5.07 percent for the week ended today from 5.21 percent, mortgage finance company Freddie Mac said in a statement. The average 15-year rate was 4.4 percent, according to the McLean, Virginia-based company.

Loan rates had climbed as the Federal Reserve wound down buying about
$1.25 trillion of securities backed by U.S. residential mortgages. The
program helped reduce rates to a record low of 4.71 percent in December.

The government bond purchases from Fannie Mae, Freddie Mac and Ginnie
Mae, agencies that buy home loans from lenders and package them into
securities, brought down yields and allowed lenders to reduce mortgage
rates while still selling the bonds at a profit.

The Mortgage Bankers Association‘s index of mortgage
applications fell 9.6 percent in the week ended April 9. The portion of
refinancings dropped 9 percent. Applications to purchase a home slumped
11 percent.


One comment:

  1. MikeCherone April 29, 2010 at 9:40 a.m.

    Great news here about mortgage rates. It’s encouraging for borrowers looking to secure personal home mortgages, as well as specialized commercial mortgages, like restaurant mortgages, for example. Could this be a real sign that the economy is ready to make a comeback?