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Foreclosures at Lowest Level Since April 2007 as Mortgage Rates Remain Unchanged

Foreclosures at Lowest Level Since April 2007 as Mortgage Rates Remain Unchanged

Average mortgage rates on 30 year conforming loans remained unchanged this week as another housing indicator released showed a housing market in full recovery. This past week, RealtyTrac, released its U.S. Foreclosure Market Report™ which showed foreclosures were at 150,864 in January - the lowest level since April 2007.

Over the past several months, there have been many reports released showing the housing market has recovered from the worst bust since the Great Depression of the 1930's. New home sales and existing home sales are increasing, home prices have moved higher over the past 12 months, and the inventory of homes available for sale has decreased, all a sign of a healthy housing market.

The biggest contributor to the housing recovery has been the lowest mortgage rates in over 50 years. Since the recession which was caused by the housing bust, the Federal Reserve has embarked on policies designed to lower mortgage rates to help the housing market and economy recover.

The Fed's efforts have paid off, first with a boon in housing refinancing as refinance rates fell to record lows. Second, home prices stopped falling and potential home buyers came into the market to buy. Home buyers were able to take advantage of the lowest current mortgage rates in a generation and the highest home affordability in a generation.

Average 30 year conforming mortgage rates for the week ending February 14, 2013, are at 3.53 percent with 0.7 mortgage points, unchanged from the prior week's average 30 year mortgage rate. Mortgage rates today on 30 year conventional loans are higher than the Freddie Mac average at 3.64 percent.

15 year conventional mortgage rates averaged 2.77 percent with 0.8 mortgage points for the week ending February 14, 2013, the same level as last week's average 15 year mortgage rate. Today's mortgage rates on 15 year conforming loans are also higher, averaging 2.93 percent.

While fixed mortgage interest rates were unchanged in this week's survey, adjustable mortgage rates moved higher. Average 5 year adjustable mortgage rates were at 2.64 percent with 0.6 mortgage points, an increase from the prior week's average 5 year adjustable mortgage rate of 2.63 percent.

Average 1 year adjustable mortgage interest rates increased to 2.61 percent with 0.3 mortgage points, an increase from the previous week's average 1 year adjustable rate of 2.53 percent. These average mortgage rates are just an average and you can easily find lenders quoting mortgage rates higher and lower than the averages.

Author: Stacy Everest
February 15th, 2013