Mtge Rates Fall Again This Week;30-Year Fixed At 4.78% -Freddie Mac

   DOW JONES NEWSWIRES 
 

Mortgage rates fell again this week as 30-year fixed-rate mortgages remained below 5%, according to Freddie Mac's (FRE) weekly survey of mortgage rates.

Mortgage rates have fallen in recent months as providers try to entice buyers amid the housing market downturn. But many consumers are wary of making the commitment to purchase a home - and many prospective buyers face challenges getting financing amid the tight credit market.

The 30-year fixed-rate mortgage averaged 4.78% for the week ended Thursday, down from last week's 4.8% average and 6.06% a year ago.

Rates on 15-year fixed-rate mortgages were 4.48%, unchanged for the third week in a row and down from 5.59% a year earlier.

Five-year Treasury-indexed hybrid adjustable-rate mortgages averaged 4.8%, down from 4.85% last week and well below their 5.73% average a year ago. One-year Treasury-indexed ARMs were 4.77%, up from 4.82% and 5.29%, respectively.

To obtain the rates, the fixed-rate mortgages and the 5-year ARM required payment of an average 0.7 point and the 1-year ARM required an average 0.5 point. A point is 1% of the mortgage amount, charged as prepaid interest.

"Rates for fixed-rate mortgages hovered at record lows this week as ARM rates eased further," Freddie Mac Vice President and Chief Economist Frank Nothaft said. He added the housing market may be edging toward a bottom as existing-home sales for March stayed near their four-month average and new home sales beat expectations.

-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089; [e-mail]