Mortgage rates turn lower in week

Apr. 21, 2011 (UPI NewsTrack) -- WASHINGTON, April 21 (UPI) -- Long-term mortgage rates dropped in the week after four consecutive weeks of gains, the U.S. Federal Home Loan Mortgage Corp. (OOTC:FMCC) said Thursday.

Average interest rates for 15-year and 30-year mortgages both dropped in the week ending Thursday with 15-year, fixed-rate loans falling from 4.13 percent to 4.02 percent with 0.7 points. Average rates for 30-year mortgages in the week fell from 4.91 percent to 4.8 percent with 0.7 points, Freddie Mac said.

Rates for 15-year, fixed-rate mortgages a year ago stood at 4.39 percent. Rates for 30-year mortgages a year ago averaged 5.07 percent.

Freddie Mac's vice president and chief economist Frank Nothaft said, "Low inflation is keeping mortgage rates at bay."

"The core consumer price index rose just 0.1 percent in March, below the market consensus forecast. The 12-month growth rate in core prices was 1.2 percent, which is also rather low by historical standards," he said in a statement.

Meanwhile, he said, "The housing market continues to struggle."

Data on housing starts, sales and builder confidence continue to indicate a market in depression. On Thursday, the Federal Housing Finance Agency said home prices fell 1.6 percent from January to February.