According to Freddie Mac, average rates for both fixed and adjustable mortgages declined during the week of July 14. The rate for 30-year fixed loans was 4.51 percent, down from 4.6, and the rate for 15-year fixed loans was 3.65 percent, down from 3.75. Five-year adjustable mortgages averaged 3.29 percent, a decline from 3.3, and 1-year adjustable mortgages came in at an average 2.95 percent, compared to 3.01 last week.
While lower rates are good news for those making a move, declines are being spurred by continuing economic woes. Frank Nothaft, Freddie Mac chief economist and vice president, said the drop in home loan interest rates can be attributed to a weak government jobs report and unemployment at its highest level since December 2010.
CNNMoney and Clear Capital both issued reports recently predicting house prices will continue to fall throughout 2011. These declining prices, coupled with low mortgage rates, should make real estate attractive to buyers for some time. Nevada, Arizona and Central Iowa realtors have recently reported increased home sales.
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