Mortgage Interest Rate Stay Below 4 Percent

Long term mortgage rates stayed below 4 percent in April, keeping mortgage interest rates at record low levels according to mortgage data from mortgage giant Freddie Mac.  The interest rates first slipped below 4 percent for the first week of April at 3.98 percent.  The average rate on a 15-year FRM dropped to 3.21 percent, and the 1-Year ARM came in at 2.78 percent.  The record low mortgage rates.  By the end of April, the 30-year fixed rate mortgage had dipped to an interest rate of 3.88 percent.  The 15-year FRM had dropped to 3.12 percent and the 1-year ARM came in at 2.74 percent.

Real estate experts are watching for trends in the important real estate lending index that may predict an brisk increase in buying and selling activity.  More recently, the lower rates have failed to spark more home buyers, even in light of a pent up demand for residential property.  Fannie Mae and Freddie Mac have also tightened lending standards making it more difficult for first-time buyers to take advantage of FHA first-time buyer programs.  Rates are expected to remain low or to drop slightly this year because of decreased borrower activity, which may lengthen the time required to sell the excess inventory of homes that have been foreclosed.