Rates Hit Lowest Point of the Year

Mortgage rates continued to trend downward last week, reaching their lowest points of the year, according to new figures from the Mortgage Bankers Association.

Average interest rates on 30-year fixed-rate mortgages fell for the third week in a row, dropping to 4.76 percent, down from 4.80 percent previously. Origination fees and points also fell, to an average of 0.76 points, down from 1.00 points the week before.Average rates on 15-year fixed-rate loans also declined, to 3.96 percent, down from 4.03 percent. Origination fees and points also declined, to an average of 0.82 points, down from 0.96 points the week before. It’s the lowest either rate has been since early December.The declining rates stirred some interest in mortgage refinancing, which has been on the wane in recent months as 30-year rates flirted with the 5 percent mark. Refinance applications were up a seasonally adjusted 6.0 percent last from the week before.Applications for mortgages to purchases a home were up slightly, by 0.3 percent. Purchase applications have trended down over the past month by an average of 2.4 percent a week, while refinance applications have held steady on average during the same period.Demand for home purchase mortgages remains quite weak compared to historic norms, down 36.9 percent from the same week one year ago.The survey covers half of all residential U.S. mortgages for the week ending Friday, April 29, with all figures are based on mortgages with an 80 percent loan-to-value ratio.