Rates on 30-year fixed-rate mortgages averaged 4.97 percent with an average of 0.7 point this week, down from 5.01 percent a week ago, Freddie Mac said in releasing the results of its weekly Primary Mortgage Market Survey.

Rates surveyed by Freddie Mac are for prime borrowers taking out loans with 20 percent downpayments. Borrowers taking out loans too large or risky for purchase or guarantee by Freddie Mac can expect to pay more.

Rates on 30-year fixed-rate mortgages averaged 4.97 percent with an average of 0.7 point this week, down from 5.01 percent a week ago, Freddie Mac said in releasing the results of its weekly Primary Mortgage Market Survey.

Rates surveyed by Freddie Mac are for prime borrowers taking out loans with 20 percent downpayments. Borrowers taking out loans too large or risky for purchase or guarantee by Freddie Mac can expect to pay more.

Freddie Mac said the 15-year fixed-rate mortgage averaged 4.34 percent with an average 0.6 point for the week ending Feb. 11, down from 4.4 percent last week and 4.81 percent a year ago.

The 5-year treasury-indexed hybrid adjustable-rate mortgage (ARM) loan averaged 4.19 percent this week, with an average 0.6 point, down from 4.27 percent last week and 5.23 percent a year ago.

The 1-year Treasury-indexed ARM averaged 4.33 percent this week with an average 0.6 point, up from 4.22 percent last week but down from 4.94 percent a year ago.

In December, the 30-year fixed-rate hit a record low of 4.71 percent in records dating back to 1971. Mortgage rates are expected to rise if the Federal Reserve wraps up ongoing purchases of $1.25 trillion in mortgage-backed securities (MBS) at the end of March, as planned.

If conditions warrant, the Fed may even start selling off its MBS holdings off as part of monetary tightening measures to head off inflation (see story).

In a Jan. 12 forecast, the Mortgage Bankers Association projected rates on 30-year fixed-rate mortgages will rise to 6.1 percent during the final quarter of 2010, 6.3 percent in the last quarter of 2011, and average 6.6 percent during the final three months of 2012.

***

What’s your opinion? Leave your comments below or send a letter to the editor.

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×