The average rate for a 30-year, fixed rate U.S. mortgage loan declined to 4.49 percent from 4.54 percent the previous week, Reuters reported August 4, 2010.
A year ago the same loan stood at 5.22 percent. The data come from Freddie Mac.
Thirty-year mortgage rates have fallen to new lows in six out of the last seven weeks.
Fifteen-year, fixed-rate mortgages averaged 3.95 percent, down from 4 percent the previous week, the lowest since Freddie Mac began surveying this loan type in 1991. Fifteen-year mortgage rates have hit fresh lows in five of the last seven weeks.
With the home buyer tax credit now expired, low mortgage rates are the biggest incentive for potential home buyers to move off the sidelines. I have had several closings over the past few weeks where my clients had 30-year, fixed-rate loans at less than 5 percent.Applications to refinance loans increased 1.3 percent last week and those to purchase homes increased 1.5 percent, according to the Mortgage Bankers Association.
The following is a report by National Public Radio.