Buyers Better Hurry: Rates Reach New Lows

For the sixth straight week, fixed mortgage rates
inched down, reaching new lows for 2011. The 30-year fixed-rate mortgage
averaged 4.60 percent this week while the 15-year mortgage averaged 3.78
percent, Freddie Mac reports in its weekly mortgage market survey.

Meanwhile, the National Association of
Home Builders reported this week that home
affordability reached its highest level in 20
, making the purchasing power for home
buyers even better during this traditionally prime buying season.

Here’s a closer look at mortgage rates:

  • 30-year, fixed-rate
    Averaging 4.60 percent this week,
    it was down slightly
    from last week’s 4.61 percent average. Last year at this time,
    30-year rates averaged 4.84 percent. The 30-year fixed rate mortgage hasn’t been
    under this week’s 4.60 percent average since early December 2010 when it fell to
    4.46 percent.
  • 15-year, fixed-rate mortgage:
    Averaging 3.78 percent this week, it also was
    down from last week’s 3.80 percent average. Last year at this time, the 15-year
    fixed-rate mortgage averaged 4.21 percent. It has not been under this week’s
    3.78 percent average since late November 2010 when it fell to 3.77
  • 5-year adjustable-rate
    Averaging 3.41 percent this week,
    it was down from last week’s 3.48 percent average. A year ago at this time, the
    5-year ARM averaged 3.97 percent.

Source: “Fixed Mortgage Rates Continue to Find New
Freddie Mac (May 26,