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Mortgage Rates Remain Flat

Mortgage rates seem to be in a holding pattern. While still relatively low, rates remained flat for the second consecutive week, ""Freddie Mac"":http://www.freddiemac.com/ and ""Bankrate"":http://www.bankrate.com/ reported Thursday.

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According to Freddie Mac's Primary Mortgage Market Survey, 30-year fixed-rate mortgages averaged 5.06 percent with an average 0.7 point for the week ending April 29, 2010, barely budging from last week's average of 5.07 percent. During this same week last year, 30-year fixed-rate mortgages averaged 4.84 percent.

""Mortgage 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 VP and chief economist. ""These low rates have been helping to moderate house price declines over the course of the year.""

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Freddie Mac said 15-year fixed-rate mortgages showed no movement from last week, holding steady at 4.39 percent with an average 0.7 point. However, rates were down from a year ago when 15-year fixed-rate mortgages averaged 4.51 percent.

Bankrate reported the same trend of unchanged rates, saying the Federal Reserve is holding interest rates low, showing no indication of raising them and no inclination to sell their substantial holding of long-term Treasury notes.

""By the Fed holding steady, mortgage rates are holding steady, showing very little movement in the past two weeks,"" the tracking company said.

According to Bankrate's weekly national survey, 30-year fixed-rate mortgages averaged 5.21 percent with an average 0.45 point, nudging down from 5.22 percent last week. In addition, the company said 15-year fixed-rate mortgages averaged 4.54 percent, falling only slightly from last week's average of 4.55 percent.

Complementing Bankrate's survey is its weekly Rate Trend Index, in which mortgage experts predict which way rates are headed over the next week. The vast majority of panelists â€" 53 percent â€" said mortgage rates will remain more or less unchanged over the next week. Of those remaining, 31 percent forecast an increase in rates, and just 16 percent predicted a decline.