Mortgage rates remain near historic lows

DELRAY BEACH — Mortgage rates are either rising slightly or falling slightly, depending on which mortgage survey — Bankrate's or Freddie Mac's — you favor. In both cases, they’re still near historic lows.

Freddie Mac’s Primary Mortgage Market Survey has the 30-year fixed-rate mortgage averaging 4.86 percent, with an average 0.6 point, this week up from 4.84 percent a week ago. Last year at this time, the 30-year averaged 6.01 percent.

North Palm Beach-based Bankrate’s weekly national survey found the 30-year sliding to 5.21 percent from 5.27 percent a week earlier. That’s with an average of 0.4 point.

“Interest rates for fixed-rate mortgages were little changed this week following the release of April’s employment figures,” said Frank Nothaft, Freddie Mac vice president and chief economist. “The economy lost 539,000 jobs, less than the monthly job loss of the past five months, and the unemployment rate rose to 8.9 percent. ARM rates, however, fell slightly over the period.”

Bankrate cited a renewed dose of economic pessimism for sending mortgage rates south. Retail sales for April were worse than expected and there was a downward revision to the March figures. Gloomy economic news drives investors into the safe haven of government bonds, to which mortgage rates are closely related. And the consumer spending certainly qualifies as gloomy news, since it accounts for 70 percent of economic output.

Other rates from the Freddie Mac survey:

— The 15-year this week averaged 4.52 percent with 0.6 point, up from a week ago’s 4.51 percent. A year ago at this time, the 15-year FRM averaged 5.60 percent.

— Five-year adjustable-rate mortgages averaged 4.82 percent this week, with 0.6 point, down from 4.90 percent

— One-year ARMs averaged 4.71 percent this week with 0.6 point, down from 4.78 percent. At this time last year, the 1-year ARM averaged 5.18 percent.

Other rates from the Bankrate survey:

— The average 15-year fixed rate mortgage inched lower to 4.76 percent, while the average jumbo 30-year fixed rate dropped to 6.56 percent.

— Adjustable rate mortgages were down sharply, with the average 5-year ARM plunging to 4.81 percent and the 7-year ARM sinking to 5.57 percent.

A plurality of Bankrate’s mortgage experts see rates staying put pretty much over the next four to six weeks. Forty-two percent of panelists see no change in rates, while the remaining 58 percent are split right down the middle between rising and falling.