30-Year Fixed Rate Unmoved for Third Consecutive Week

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The 30-year fixed-rate for mortgage loans remained unmoved for the third consecutive week according to Freddie Mac’s weekly survey.

For the week ending Feb. 14, 2013, the 30-year fixed-rate mortgage (FRM) averaged 3.53 percent with an average 0.8 point, which is the same as last week. A year ago, the 30-year FRM averaged 3.87 percent.

If a borrower took out a $175,000 home loan at today’s mortgage interest rate of 3.53 percent, his or her monthly payment would be $788.76. After 30 years, he or she would pay a total of $283,953.60.

If a borrower took the same mortgage out one year ago when mortgage interest rates were 3.87 percent, they would pay $822.41 monthly, for a total cost of $296,067.60 after 30 years. Using the current home loan interest rate rather than last year’s, borrowers would save $12,114. 

The 15-year fixed-rate mortgage averaged 2.77 percent with a 0.8 point, the same as last week. At this time last year, the 15-year fixed mortgage interest rate averaged 3.16 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.64 percent with a 0.6 point this week, an increase from last week’s rate of 2.63 percent. A year ago, the 5-year ARM averaged 2.82 percent.

The 1-year Treasury-indexed ARM averaged 2.61 percent with a 0.3 point, up from last week when it averaged 2.53 percent. At this time last year, the 1-year ARM averaged 2.84 percent.

“Mortgage rates remain near record lows and continue to support housing demand, translating into a pick-up in home prices in most markets,” said Frank Nothaft, Freddie Mac vice president and chief economist in a released statement.

According to the National Association of Realtors, the median sales price of existing homes rose 10 percent between the fourth quarter of 2011 and 2012. The increase was the largest year-over-year gain in seven years.

In metropolitan areas, 88 percent saw positive annual increases during the fourth quarter, an increase from 81 percent in the third quarter and 75 percent in the second quarter. The cities that experienced the largest gains are Phoenix (34 percent), Detroit (31 percent) and San Francisco (28 percent).