Fixed mortgage rates remain unchanged while the average rate on a 30-year fixed loan stays close to 5%. According to Freddie Mac, the previous weeks have shown a rise in mortgage rates from 4.86 to 4.87%. In November of last year, it hit the lowest rate since the past 40 years of 4.17%. On the other hand, a 15-year fixed mortgage increased in average rate from 4.09% to 4.10%. Prior to this increase, the rate declined to 3.57% last November, the lowest since 1991.

Despite the decline in mortgage rates, home sales are not significantly improving. In fact, the latest homebuilder report from KB Home, a Los Angeles based company, showed a big decline in home orders for December to February. The company reported that there is a drop in their home orders by 32% compared to the previous year. Even the number of homes delivered also declined to 28%. This is also the case for Lennar wherein new orders decreased to 12% and home deliveries fell to 3%.

This decline in home sales and deliveries may be attributed to the reluctance of potential home buyers to move. This is because of stringent credit requirements, fear of unemployment and expectations for a further decline in home prices because of the rising number of foreclosed homes at the present time.

The average mortgage rates are calculated from the collected rates from different lenders all over the country every Monday to Wednesday of each week. This is calculated by Freddie Mac. The average mortgage rate of an adjustable rate for one year dropped to 3.22% from 3.26%. In the previous weeks, the rate fell to its lowest record since 1984 to almost 3.17%.

The calculation for mortgage rates excludes add-on fees or points. A point is equivalent to 1% of the total amount loaned. The average fee for a fixed loan of 30 years, 15 years and 1 year ARM is at 0.7 points according Freddie Mac’s survey. For a five year loan, the average fee is at 0.6 points.

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