Mortgage rates have been holding steady for the third week straight, according to recent real estate market data.  This week, thirty-year fixed-rate home loans averaged 4.51 percent with an average 0.8 point, which was up from 4.51 percent with an average 0.7 point from a week previous.  A year ago this same thirty-year fixed-rate mortgages averaged 4.58 percent and fell as low as 4.17 percent in November, as reported by a weekly survey conducted by Freddie Mac.  The rates for 15-year fixed-rate residential mortgages averaged 3.69 percent with an average 0.7 point, which is the same as a week ago.

According to Frank Nothaft, Freddie Mac’s chief economist, the housing market is showing signs of improvements especially in light of a seasonal increase in homebuying over the spring-summer period.

For more information on this or other national mortgage rate statistics, visit freddiemac.com.

And for more information on buying or selling homes in AL’s Gulf Coast contact Barbara Reeves today.

Since home prices have continued to fall, Freddie Mac has determined that they are at a heightened risk of many more mortgage defaults and claims.  They report that there may be even more of a housing price decrease in 2009. In light of this news they have increased several fees and added new ones. One of their new fees is a 0.75% fee of the loan amount on certain condominium mortgages when the loan equals more than 75% of the estimated condominium value. Their increases include fees on the following types of mortgages:

• Loans that let borrowers pay interest in the primary years and defer principal payments
• Refinance loans that allow the borrower to cash out some of their home equity
• Loans with certain combinations of low credit scores and down payments
• Condominium mortgages

The National Association of Realtors and the National Association of Home Builders have protested these increases, as they claim that these additional costs are discouraging potential home buyers and people considering refinancing their loans.