Long-term mortgage rates remain under 4 percent, affordability still high
Apr 6 2012 3:17PM
A recent report reveals that mortgage rates continue to offer potential buyers high affordability when combined with low home prices as rates are down from the previous week for the week ending April 5.
Freddie Mac's Primary Mortgage Market Survey shows the 30-year fixed mortgage rates averaged 3.98 percent, down from the week prior when the rate averaged 3.99 percent. This time last year, the 30-year FRM rate averaged 4.87 percent. Additionally, the 15-year FRM rate also fell slightly from the previous week, reaching 3.21 percent. A year ago, the 15-year FRM rate averaged 3.72 percent.
According to the survey, the 5-year adjustable-rate mortgage rate averaged 2.86 percent, down from the week before when it averaged 2.90 percent. This time last year the 5-year ARM rate averaged 3.75 percent.
While those looking to purchase homes for sale in Los Angeles County and other surrounding areas may be waiting for rates to fall more, many economists urge potential buyers to take advantage of the affordability currently being offered as rates are predicted to return to more than 4 percent in the near future.