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Mortgage Rates Reach Year Low

May 21, 2011

After declining for four weeks straight, mortgage rates have seen their lowest levels of 2011. Freddie Mac reported in its weekly mortgage market survey that the most popular choice out there, the 30-year fixed-rate mortgage, is averaging 4.63 percent this week in comparison with last weeks 4.71 percent. Last year, the same mortgage averaged 4.93 percent.

The 15-year fixed-rate mortgage has also seen its lowest levels thus far for 2011 averaging 3.82 percent this week, dropping .07 percent from the previous week. Last year at this time, the 15-year mortgage averaged 4.30 percent.

As far as the 5-year adjustable-rate mortgage is concerned, the weekly report notes a drop from 3.47 percent last week to 3.41 percent this week. A year ago, this same mortgage averaged 3.95 percent.

With these changes, the number of applications filed are increasing. As reported by the Mortgage Bankers Association, there has been an 8.2 percent increase in applications over last week. Also, the refinancing index has increased 9 percent – reaching record highs since mid-March.

Another area that got a boost this week is mortgage applications for purchase, which rose 7.1 percent over last week.

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