Mortgage Rates Fall to a Monthly Low

[Jun 28, 2008.]

 

For 30-year mortgages, the rates have managed to drop recently to the lowest level in a month, which provides a much-needed sense of good news for people interested in buying homes.

According the reports issued by Freddie Mac, a leading mortgage company that evaluates the state of the industry, 30-year mortgages with fixed rates managed to average %6.01 for the week ending the 15th of May. This figure checks in beneath the %6.05 that was reported for the week prior, and was the lowest since the middle of April when mortgage rates were averaging around %5.88.

Also relevant is the fact that other rates have managed to fall, such as five-year mortgages with adjustable rates. These dropped to a figure of %5.57, a moderate decrease from %5.67 from the previous week. Also, one-year mortgages have managed to drop down to %5.18, compared to last week which measured in with %5.29.

Despite these changes, the rates on 15-year mortgages with fixed rates, one of the most popular choices for refinancing a home, held firm at %5.6.

In regards to the other types of mortgages available, the rates have dipped, reflected an optimistic hope held by cautious investors that an economy recovery could be arriving soon for the financial markets, which have been ravaged by difficult problems for over 10 months now. Ben Bernanke, Chairman of the Federal Reserve, has said that the issues facing the industry have managed to ease somewhat, although the situation should still be considered pretty fragile.

Taken all together, the levels of moderation present in several mortgage rates provide a healthy amount of good news for those who are interested in purchasing homes, especially considering the fact that these people may be facing a much more difficult situation trying to obtain loans with the stricter credit standards that have been put into place.