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Health & Fitness

Mortgage Rates Reach Another Low

With mortgage rates inching down again, it's a good time to purchase. There's also FHA, VA, and CDA money available.

For the fifth straight week, mortgage rates inched down again—this time reaching the lowest level of the year as well as the lowest level, year-to-date.

The 30-year fixed-rate mortgage averaged 4.61 percent this week, while the 15-year rate averaged 3.80 percent, Freddie Mac reports in its weekly mortgage market survey.

The 30-year mortgage hasn’t reached 4.61 percent or below since December 2010. Last year at this time, it averaged 4.84 percent, while the 15-year fixed-rate mortgage averaged 4.24 percent.

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Falling rates are yet another lure to purchase during real estate’s traditionally prime home buying season. Owning a home has also recently been found to be more affordable than renting in 78 percent of the major U.S. cities, according to the latest data from Trulia.

Mortgage applications, meanwhile, are increasing as interest rates continue to fall. Mortgage loan application volume increased 7.8 percent this week compared with the week prior, according to the Mortgage Bankers Association. Refinancings hit the highest level since mid-December, increasing 13.2 percent over the prior week, while the purchase index for mortgage applications dropped 3.2 percent.

Find out what's happening in Elkridgewith free, real-time updates from Patch.

It's a great time to purchase your first home, move up to a bigger home or buy an investment property. Contact me with any questions you might have: phoebe@kwflagship.com or 240-593-4128.

Sources: “Fixed-Rate Mortgages Hit a New Year-to-Date Low,” Freddie Mac (May 19, 2011) and “Mortgage Applications Grow Again on Home Refinancings,” HousingWire (May 18, 2011)

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