Freddie Mac said today in their weekly mortgage rates survey results that 30 year fixed mortgage rates averaged 4.99% this week, down from 5.06% last week. The recent drop in mortgage rates is somewhat surprising considering many economists predicted a swift and considerable spike in mortgage rates coming off early November’s record lows. At their bottom, 30 year fixed mortgage rates averaged 4.71% according to Freddie Mac and were as low as 4.5% at par according to FreeRateUpdate.com . Instead of a deterioration what we’ve seen is a slow and steady improvement in mortgage rates as mortgage-backed securities trend upward. Mortgage rates move opposite mortgage backed securities. Recent economic reports suggesting recovery is still shaky, as well as confidence in the U.S. dollar have aided mortgage rates.
Today’s 30 year fixed mortgage rates are down to 4.75% at par, from 4.875% Tuesday. 30 year fixed mortgage rates at par were as high 5.125% last week. Par rates are the lowest available interest rates that DO NOT require additional closing costs, known as buy down or discount points to be paid.
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