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Mortgage rates remain 'historically low'

08.31.09
By Nicholas Storie

Recent figures indicate that the economy may be rebounding, and at the same time Americans looking to get a home loan are hearing good news as mortgage rates appear to be remaining fairly stable.

Last week Freddie Mac reported that the average rate for a 30-year fixed-rate mortgage inched up 0.2 percentage points to 5.14 percent or the week ending August 27. While this is up from the lows of below 5 percent seen early this year, Freddie Mac notes that it is significantly below the 6.40 percent seen last year at this time.

A slight increase in 15-year fixed-rate mortgages was also seen as the average rate increased to 4.58 from 4.56 the previous week.

Frank Nothaft, vice president and chief economist for Freddie Mac, said while the rates have increased from earlier this year, they still remain "historically low" and are helping to drive the housing market.

Americans appear to be taking advantage of these low rates as figures last week from the Mortgage Bankers Association indicate that mortgage applications rose for the second straight week.



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