Mortgage rates remain unchanged for second straight week

According to the most recent data released by Freddie Mac, the interest rate for 30-year fixed mortgages remained unchanged for the second-consecutive week - a sign that the downward trend for home loans could be over.

Overall, the 30-year mortgage rate stayed at 4.50 percent, which is down from 4.69 percent a year ago. The rate for 15-year FRMs settled at 3.69 percent, down from 3.67 percent last week and 4.13 percent last year.

"Mortgage rates were virtually unchanged this week amid further indications of a soft housing market," Frank Nothaft, Freddie Mac's chief economist and vice president, stated. "Although new construction on single-family homes ticked up in May from April, it was still below the overall pace set in 2010. Moreover, existing home sales fell 3.8 percent in May to the fewest since November 2010."

The Treasury-indexed hybrid adjustable-rate mortgages went in different directions, however, as the average for five-year ARMs declined, while one-year ARMs increased.

While mortgage rates still remain low, more consumers might now begin taking advantage of them before an increase takes place. For regions with improving job sectors, such as Houston, real estate sales could increase significantly soon.

Courtesy of 2M Realty News