30 Year Fixed Rate Mortgage Still Under 5%

The rate for 30 year fixed mortgages remained unchanged for the latest week as the rate remained below the 5% mark.

Mortgage giant Freddie Mac announced on Thursday April 7th that the rate of this week remained unchanged however last week the rate rose from 4.86% to 4.87%. The rate hit a 4 decade low in November of last year when it fell to 4.17%.

Meanwhile the rate for the 15 year fixed mortgage rose this week by 0.01% to stand at 4.10%. The 15 year fixed mortgage had also hit a 2 decade low in the November of last year when it fell to 3.57%.

Mortgage rates closely flow the yield on ten year Treasury notes. Low mortgage rates have not helped the home sales market which is struggling to recover from the economic crisis. KB home is the latest homebuilder that has announced a decline in net orders for homes in the last quarter.

The company which is based in Los Angeles California and operates in 12 states across the country released statistics this week which showed a decrease by 28% in houses that were delivered in the last quarter and a decrease of 32% in new home orders.

Lennar Corp last week announced its statistics for the last quarter and they also posted a 12% decline in new orders and a 3% decline in homes delivered.

The sluggish new home sales in the United States are due to the fact that prospective home buyers are hesitant to buy new houses because of stringent credit requirements, fears of getting laid off and not being able to repay mortgages and an expectation that home prices will fall because of large amounts of foreclosures still available in the market.

Mortgage rates are extremely unstable and can vary on a daily basis. Hence to calculate the average rate for the week, rates are measured across United States every day from Monday to Wednesday every week by Freddie Mac.
On a 5 year adjustable rate mortgage the average rate rose from 3.7% to 3.72%. This rate hit its lowest mark since 2005 last month when it dropped to 3.25%.

Meanwhile the average rate for the 1 year adjustable rate mortgage dropped from 3.26% to 3.22%. This rate hit its lowest in almost 3 decades 3 weeks ago when it stood at 3.17%.

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