Fixed Mortgage Rates Hold Steady

Rates on a 30-year fixed rate mortgage held steady last week at 5.88 percent with an average of 0.4 point for the week ending April 17, according to data released Thursday afternoon by Freddie Mac. Rates were unchanged from one week earlier, and lower than th 6.17 percent record this time last year.

Rates have generally settled down recently after a wild ride in February and March amid the most recent episode of unrest in the mortgage secondary markets.

Five-year Treasury-indexed hybrid ARMs saw rates improve by 8 basis points, Freddie Mac said, dropping to an average of 5.48 percent this week, with an average 0.6 point, down from last week when it averaged 5.56 percent.

“Interest rates for fixed-rate mortgages held relatively steady for a second week, while ARM rates continued to decline amid market speculation that the Federal Reserve (Fed) may cut rates again at its upcoming Committee meeting,” said Frank Nothaft, Freddie Mac vice president and chief economist.

“March’s housing starts were the lowest since March 1991 and consumer sentiment in April fell to a 26-year low while homebuilder confidence remains near record lows. Currently, the federal funds future contracts suggest nearly a 100-percent probability that the Fed will cut rates at the end of this month.”

For 30-year fixed rate mortgage, visit http://www.freddiemac.com.