Financial tutorial - Credit Loan, Mortgage, Insurance

Mortgage Rates Fall to 4.8%, Home Buyers Still Scarce

26.05.10

By Nick Timiraos

Mortgage rates fell again last week, sending refinancing applications up. But in a sign that the housing market may be stumbling through a stimulus-induced hangover, new-purchase applications also fell again  to a 13-year low.

Average 30-year mortgage rates fell to 4.8% last week from 4.83% the previous week, according to the Mortgage Bankers Association. While rates on 15-year fixed-rate loans rose to 4.25% from 4.19%, the average fees charged to borrowers fell, effectively lowering the rate.

That helped refinance activity increase by 17% from the previous week, the third straight weekly increase. But purchase activity is down 27% over the past four weeks—a sign that the $8,000 tax credit that expired at the end of April simply moved demand forward.

“It’s not clear that we’re going to see much of an increase in purchase applications because anybody that wanted to buy a house probably did last month,” said Jay Brinkmann, the MBA’s chief economist.

Source: Wall Street Journal (blog)

Refinance Home Mortgage Interest Rate - News

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