30-Year Fixed Rate Mortgage Breaks Standstill

House on money
The 30-year fixed-rate for mortgage loans broke its standstill and increased this week according to Freddie Mac’s survey.

For the week ending Feb. 21, 2013, the 30-year fixed-rate mortgage (FRM) averaged 3.56 percent with an average 0.8 point, up from last week’s average of 3.53 percent. A year ago, the 30-year FRM averaged 3.95 percent.

If a borrower took out a $250,000 home loan at today’s home loan interest rate of 3.56 percent, his or her monthly payment would be $1,131. After 30 years, he or she would pay a total of $407,160.

If a borrower took the same mortgage out one year ago when home loan interest rates were 3.95 percent, they would pay $1,186.34 monthly, for a total cost of $427,082.40 after 30 years. Using the current home loan interest rate rather than last year’s, borrowers would save $19,922.40.

This week’s 15-year fixed-rate mortgage averaged 2.77 percent with a 0.8 point, the same as last week. Last year at this time, the 15-year fixed home loan interest rate averaged 3.19 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.64 percent with a 0.5 point this week, the same as last week. A year ago, the 5-year ARM averaged 2.80 percent.

The 1-year Treasury-indexed ARM averaged 2.65 percent with a 0.4 point, up from last week when it averaged 2.61 percent. At this time last year, the 1-year ARM averaged 2.73 percent.

“Mortgage rates have been relatively stable, hovering near record lows, for the past four weeks which is helping to spur new home construction,” said Frank Nothaft, Freddie Mac vice president and chief economist, in a press release.

According to U.S. Department of Commerce construction statistics, new construction on single-family houses rose in January to an annualized rate of 613,000. This rate was the highest since July 2008. Additionally, single-family building permits reached their maximum rates since July 2008.