Mortgage Rates Ease Back to 5%

Mortgage rates declined this week after a month of gains, with the average rate on 30-year fixed-rate mortgages retreating closer to 5%, according to Freddie Mac's (NYSE:FRE) weekly survey of mortgage rates.

(BizJournals.com) A 30-year fixed-rate mortgage averaged 5.09 percent in the week ending Jan. 7, down from 5.10 percent the previous week. A one-year adjustable-rate mortgage was 4.31 percent, down from 4.33 percent.

A year ago, 30-year mortgages averaged 5.10 percent.

"Mortgage rates eased slightly this week after rising consecutively through December," said Freddie Mac (NYSE: FRE) chief economist Frank Nothaft. "As the economy strengthens further and the Federal Reserve decides to raise its overnight target rate, ARM rates will follow suit … however the federal funds futures market does not anticipate any Fed action until the second half of 2010."

SOURCE: http://www.bizjournals.com/dayton/stories/2010/01/04/daily29.html