Coldwell Banker DuFour Realty - Chico, CA Real Estate

Tuesday, July 06, 2010 @ 9:39:00 AM - Written by MW

Interest rates on mortgages are at their lowest levels in nearly 50 years. Rates on 30-year fixed mortgages averaged 4.58 percent this week nationwide and 4.52 percent in the West, down from 4.69 percent nationwide the previous week, according to Freddie Mac. Last year at this time, 30-year fixed-rate mortgages averaged 5.32 percent. It is important to note that rates differ from lender to lender, day to day, and borrower to borrower. Additionally, the rate does not include origination fees or points, which averaged 0.7 percent nationwide and 0.8 percent in the West this week.

While the Federal Reserve has indicated it intends to maintain short-term rates at low levels for now, long-term rates can fluctuate with the market. Since January, the weekly 30-year mortgage rate has ranged from a high of 5.21 percent in April to this week’s low. Many economists believe the rate is more likely to increase going forward, particularly in the second half of this year and into 2011. C.A.R. forecasts interest rates will average 5.6 percent this year.

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