Dennis Norman
According to Freddie Macs weekly mortgage market survey the interest rate on home mortgages dropped to a new three-month low. The survey shows the interest rate on a 30 year fixed rate mortgage averaging 5.12 percent with 0.7 percent in fees and points this week, down from 5.29 percent last week. Last year at this time, the 30 year interest rate averaged 6.47 percent.
The interest rate on a 15-year fixed rate mortgage averaged 4.56 percent with 0.7 percent in fees this week, down from 4.68 percent last week. Last year at this time the 15 year interest rate averaged 6.00 percent.
The interest rate on a five-year ARM averaged 4.57 percent with 0.6 percent in fees this week, down from 4.75 percent last week. A year ago at this time the five-year ARM interest rate averaged 5.99 percent.
The interest rate on a one-year ARM averaged 4.69 percent with 0.5 percent in fees this week, down from 4.72 percent last week. A year ago at this time the one-year ARM interest rate averaged 5.29 percent.
Low mortgage rates are helping to reinforce the housing market. New construction on one-famly homes rose for the fifth consecutive month in July to an annualized pace of almost 500,000 homes, the most since October 2008. In addition, home builder views of housing market conditions for the remainder of the year rose for the second month in a row in August to the most positive reading since June 2008, according the National Association of Home Builders.
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