Freddie Mac, the government sponsored enterprise released that its primary mortgage market survey projected the average rate for a 30 year, fixed mortgage increase to 4.86% for the week ending Thursday from 4.81% the prior week. The average rate for a 30 year, fixed mortgage rose to 4.09% from 4.04 the prior week, as projected Freddie Mac survey.
"Fixed mortgage rates rose slightly for a second week in a row, but continue to remain quite low," according to Freddie Mac chief economist Frank Nothaft. "Low rates have benefited from relatively benign inflation reports. Inflation as measured by the 12-month growth in the core price index for consumer spending, a metric preferred by the Federal Reserve, is hovering near the lowest pace since 1960 when this data series began."
Nothaft stated he anticipates rates on a traditional 30-year, fixed mortgage to maintain under 5% throughout 2011.
And distressed property sales and shadow inventory seem to unable the housing market recovery.
"Sales of distressed properties continue to place downward pressure on house prices," Nothaft said. "In January, these homes accounted for 37% of existing home sales and rose to 39% in February, based on figures from the National Association of Realtors. House prices were down 3.1% in January from the same month last year according to the S&P/Case-Shiller Home Price Indices."
Freddie Mac stated the average five-year, adjustable-rate mortgage rose to 3.7% this week from 3.62% a prior week but is down from 4.1% a year before. The average rate for one-year, ARM increased to 3.26% from 3.21% a week before. The rate is down from 4.05% at this same time past year.
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