Mortgage rates bounce off lows

Rates on mortgages eligible for purchase by Freddie Mac bounced back slightly from last week's record lows, but remain well under 5 percent.

The 30-year fixed-rate mortgage averaged 4.84 percent with an average 0.7 point this week, up from 4.78 percent a week ago but down from 6.05 percent a year ago, Freddie Mac said in releasing results of its weekly survey of lenders.

The 15-year fixed-rate mortgage averaged 4.51 percent with an average 0.7 point, up from 4.48 percent last week but down from 5.6 percent a year ago.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 4.9 percent, with an average 0.6 point, up from 4.8 percent last week but down from 5.67 percent a year ago.

One-year Treasury-indexed ARMs averaged 4.78 percent with an average 0.6 point, up from 4.77 percent last week but down from 5.29 percent a year ago.

Rates and fees are for borrowers with good credit making 20 percent down payments. Borrowers making smaller down payments or taking out loans too large or risky for purchase by Fannie Mae and Freddie Mac can expect to pay more.

Looking back to the week ending May 1, the Mortgage Bankers Association said applications for mortgage loans were up 2 percent from the previous week.

The increase was driven by a 5 percent increase in applications for purchase loans, and a 1.2 percent increase applications to refinance.

Refinance applications accounted for 74.4 percent of total applications, down from 75.3 percent the previous week.

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