Mortgage Rates Retreat Slightly This Week: Reports

Long-term fixed mortgage interest rates fell back this week, breaking a six-week streak of steep increases.
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Data ""released by Freddie Mac"":http://www.freddiemac.com/pmms/release.html?week=51&year=2010 Thursday showed rates for 30-year fixed-rate mortgages averaging 4.81 percent (0.7 point) for the week ending December 23. That's down from last week's average of 4.83 percent. Last year at this time, Freddie says the 30-year rate was 5.05 percent.

The 15-year fixed mortgage rate this week averaged 4.15 percent (0.7 point) in Freddie's report, down from 4.17 percent last week. A year ago at this time, the 15-year rate was 4.45 percent.

The GSE's study also showed that the 5-year adjustable-rate mortgage (ARM) dropped from 3.77 percent to 3.75 percent (0.6 point). The 1-year ARM, however, edged up from 3.35 percent to 3.40 percent (0.7 point) this week.

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Freddie Mac's weekly rate survey is based on data gathered from about 125 lenders across the country. A separate study ""released by Bankrate"":http://www.bankrate.com/finance/mortgages/mortgage-rates-deliver-a-yo-yo.aspx Thursday, which derives its figures from data provided by the top 10 banks and thrifts in the top 10 U.S. markets, also showed declines for most loan products.

Bankrate’s survey puts the average 30-year fixed rate at 4.96 percent (0.46 point), down from the 5 percent mark reported by the tracking company last week.

The average 15-year fixed mortgage retreated to 4.29 percent (0.4 point) from 4.37 percent the week before. However, the larger jumbo 30-year fixed rate bucked the trend, inching higher to 5.59 percent in Bankrate’s survey. It came in at 5.58 percent last week.

Adjustable rate mortgages were broadly lower in Bankrate’s study, with the average 5-year ARM falling to 3.92 percent and the average 7-year ARM slipping to 4.35 percent.

“Investors â€" including the biggest investor of them all, the Federal Reserve â€" swooped in and picked up government bonds in the wake of the recent selloff, driving bond yields and mortgage rates lower,” Bankrate explained in its report.

The tracking company says mortgage rates “will likely hopscotch back and forth over the 5 percent mark in early 2011, but continued economic improvement will see mortgage rates trending higher as the year unfolds.”