Mortgage Rates Head Lower This Week

Interest rates on home loans have headed lower, after four straight weeks of increases.

Data released by ""Freddie Mac"":http://www.freddiemac.com Thursday shows the 30-year fixed-rate mortgage averaged 4.80 percent (0.7 point) for the week ending April 21, 2011. That's down from 4.91 percent last week. Last year at this time, the 30-year rate averaged 5.07 percent.

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Freddie Mac's ""weekly market survey"":http://www.freddiemac.com/pmms/ calculates the average rate from data reported by approximately 125 lenders across the country.

The 15-year fixed rate came in at 4.02 percent (0.7 point) this week, down from last week when it averaged 4.13 percent. A year ago at this time, the 15-year rate was 4.39 percent.

Adjustable-rate mortgages (ARMs) also dropped, according to the GSE's study. The 5-year ARM fell from 3.78 percent last week to 3.61 percent (0.6 point) this week. The 1-year ARM slipped from 3.25 percent to 3.16 percent (0.6 point).

""Low inflation is keeping mortgage rates at bay,"" said Frank Nothaft, Freddie Mac's VP and chief economist. Still, Nothaft says, ""The housing market continues to struggle.""

He explained, ""Although housing starts and existing home sales in March were stronger than the market consensus, they were still at low levels. Moreover, homebuilders became more pessimistic in April about the near-term according to the NAHB/Wells Fargo Housing Market Index.""