My Real Estate Blog

30-year fixed-rate mortgage averaged 4.32% with an average 0.7 point for the week ending September 2, 2010, down from last week when it averaged 4.36%. Last year at this time, the 30-year averaged 5.08%.

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.54% this week, with an average 0.6 point, down from last week when it averaged 3.56%. A year ago, the 5-year ARM averaged 4.59%.

The 12-month price growth of core personal expenditures remained at 1.4% in July, which kept overall inflation expectations well at bay. Fed chairman Bernanke reiterated this in his August 27th speech in Wyoming, noting that with inflation expectations reasonably stable and the economy growing, inflation should remain near current readings for some time before rising slowly. As a result, mortgage rates eased further this week to new historic lows.

House prices, however, appear to be firming. Home prices rose 2.3% between the first and second quarter of this year, reaching the highest level since the fourth quarter of 2008, according to the S&P/Case Shiller® National Home Price Index. In addition, 15 metropolitan areas in the 20-City Composite Index experienced annual house price growth in June, compared to 13 in May and 11 in April.