Fannie Mae sees rates on 30-year loans at 4 percent by end of year
BY INMAN NEWS, THURSDAY, MARCH 28, 2013.
Mortgage rates edged up this week as investors shook off worries about the European debt crisis and remained optimistic about the U.S. economy and prospects for growth.
Rates on 30-year fixed-rate mortgages averaged 3.57 percent with an average 0.8 point for the week ending March 28, up from 3.54 percent last week but down from 3.99 percent a year ago, Freddie Mac said in releasing the results of its latest Primary Mortgage Market Survey. Rates on 30-year fixed-rate loans hit a low in Freddie Mac records dating to 1971 of 3.31 percent during the week ending Nov. 21, 2012.
For 15-year fixed-rate mortgages, rates averaged 2.76 percent with an average 0.7 point, up from 2.72 percent last last week but down from 3.23 percent a year ago. Rates on 15-year fixed-rate loans hit a low in Freddie Mac records dating to 1991 of 2.63 percent during the week ending Nov. 21, 2012.
For five-year Treasury-indexed hybrid-rate mortgage (ARM) loans, rates averaged 2.68 percent with an average 0.6 point, up from 2.61 percent last week and down from 2.90 percent a year before. The average rate for last week tied an all-time low in Freddie Mac records dating to 2005 last seen during the week ending Feb. 28.
Rates on one-year Treasury-indexed ARM loans averaged 2.62 percent with an average 0.3 point, virtually unchanged from last week, but down from 2.78 percent a year ago. Rates on one-year ARM loans hit a low in records dating to 1984 of 2.52 percent during the week ending Dec. 20, 2012.
Looking back a week, applications for purchase loans rose a seasonally adjusted 7 percent for the week ending March 22 from the previous week, according to a separate survey by the Mortgage Bankers Association. Demand for purchase loans was up 10 percent from a year ago.