Mortgage Rates Decline

Modest declines in mortgage rates were seen over the past week.
By Lauren LaCapra ,

WASHINGTON (

TheStreet

) -- Mortgage rates eased slightly over the past week, according to

Freddie Mac

(FMCC.OB)

, following a run-up on bullish economic data.

The cost of the most popular type of home loan, 30-year fixed mortgages, dropped to an average of 4.81% for the week ended Thursday, from 4.83% the previous week. A year ago, those mortgages cost 5.05% on average, Freddie Mac said.

Most other types of home loans that Freddie Mac tracks also declined, including 15-year fixed rates and 5-year adjustable rates, though 1-year adjustable rates ticked up from week-ago levels.

"Rates remain low, however, despite the recent rise, and are still well below where they began the year," Freddie's chief economist, Frank Nothaft, said in a statement.

Nothaft points out that the low-rate environment has helped stimulate the housing market -- at least for opportunistic buyers, though it's still in the throes of a foreclosure crisis. For instance, existing home sales rose 6.7% last month, according to National Association of Realtors, while the median sales price was 1.2% higher than year-ago levels.

-- Written by Lauren Tara LaCapra in New York

.

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