Industry NewsMortgage

Mortgage rates hold for now, but expect increases

End of Fed MBS purchases will likely drive up rates
Published on Apr 30, 2010

Mortgage rates are holding steady despite last month's wind-down of a $1.25 trillion Federal Reserve program to buy up mortgage-backed securities.Rates for 30-year fixed-rate mortgages averaged 5.06 percent with an average 0.7 point for the week ending April 29, down slightly from 5.07 percent last week but up from 4.78 percent a year ago, Freddie Mac said in releasing the results of its weekly Primary Mortgage Market Survey.Rates on 30-year fixed loans have averaged about 5 percent over the first four months of this year, staying within a band of roughly a quarter percentage point and virtually matching 2009's annual average, said Frank Nothaft, Freddie Mac's chief economist.The 15-year fixed-rate mortgage averaged 4.39 percent with an average 0.7 point, unchanged from last week but down from 4.48 percent a year ago.The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4 percent, with an average 0.6 point, down from 4.03 percent last week and 4.8 percent a year ag...

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