Mortgage Rates Fall But Stay Above 5%

McLEAN, Va. – Rates for long-term mortgages dropped this week but still remained above 5 percent, mortgage financier Freddie Mac said Thursday.

The average rate on a 30-year fixed-rate mortgage was 5.07 percent this week, down from 5.21 percent a week earlier, a survey by Freddie Mac said. Last week's average rate for a 30-year fixed mortgage had been the highest since mid-August, when it was 5.29 percent.

Rates had dropped to a record low of 4.71 percent in December, pushed down by a campaign by the Federal Reserve to reduce borrowing costs for consumers. The program ended at the end of March, but the Fed left the door open to reviving the program if the economy weakens.

"After rising for four consecutive weeks, mortgage rates eased back to where they were two weeks ago and still remain historically low," said Frank Nothaft, Freddie Mac's chief economist.

This week, the average rate on a 15-year fixed-rate mortgage was 4.4 percent, down from 4.52 percent last week.

Rates on five-year, adjustable-rate mortgages averaged 4.08 percent, down from 4.25 percent a week earlier. Rates on one-year, adjustable-rate mortgages dipped to 4.13 percent from 4.14 percent.

The rates do not include add-on fees known as points. One point is equal to 1 percent of the total loan amount.

The Associated Press