""Freddie Mac's report"":http://www.freddiemac.com/pmms/release.html?week=44&year=2010&display=release on mortgage interest rates this week says long-term 30-year rates rose slightly, while 15-year rates eased and short-term adjustable-rate mortgages set new lows. A separate ""study from Bankrate"":http://www.bankrate.com/finance/mortgages/rates-fall-back-to-record-low.aspx claims mortgage interest rates dropped across the board to record lows.[IMAGE]
Freddie's numbers are based on data collected from about 125 lenders across the country. The GSE reported that rates for 30-year fixed mortgages averaged 4.24 percent (0.8 point) for the week ending November 4, 2010. That's up slightly from last week's average of 4.23 percent, and marks the third consecutive week the 30-year rate has increased in Freddie's study.
The average rate on 15-year fixed mortgages came in at 3.63 percent (0.7 point), according to the GSE, down from 3.66 percent last week.[COLUMN_BREAK]
Frank Nothaft, VP and chief economist for Freddie Mac, explained that fixed-rates held relatively steady this week because there is little sign of inflation in economic measures.
Freddie Mac calculated the average rate of 5-year adjustable-rate mortgages (ARMs) this week at 3.39 percent (0.6 point), and 1-year ARMs at 3.26 percent (0.7 point).
Bankrate's study averages rates from the top 10 banks and thrifts in the top 10 markets. The tracking company says the benchmark conforming 30-year fixed mortgage rate returned to its record low of 4.42 percent (0.37 point) this week. That's down from 4.51 reported by the company a week ago.
The average 15-year fixed mortgage hit a new low of 3.81 percent (0.28 percent) in Bankrate's study, as did the larger jumbo 30-year fixed rate, sinking to 5.04 percent.
Adjustable rate mortgages were mostly lower, with the average 5-year ARM falling to 3.57 percent and the average 7-year ARM retreating to 3.87 percent.
On Wednesday, the ""Federal Reserve announced"":http://dsnews.comarticles/fed-to-buy-600b-in-securities-hold-interest-rates-low-2010-11-03 another injection of $600 billion into the nation's sluggish economy over the next eight months, but Bankrate says it remains to be seen if this is enough to push Treasury yields and mortgage rates lower, and if so, by how much.
""Even if the Fed is successful in pushing rates lower, it doesn't alter the fact that many would-be borrowers are upside-down, living on a reduced income, or concerned about a lack of job security,"" Bankrate noted in its report.