Mortgage Rates Edge Lower

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Article courtesy of the Los Angeles Times
According to  E. Scott Reckard  of the LA Times,

Mortgage-rate trends were mixed early this week, Freddie Mac said, with lenders offering a 30-year fixed loan at an average of 4.19%, down from 4.2% a week earlier.

The average rate for a 15-year fixed loan was unchanged at 3.36%. Loans that become adjustable after five years of fixed payments saw the start rate drop to 3.06%, from 3.08%, Freddie Mac said Thursday in releasing its weekly report.
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The survey asks lenders each Monday morning through midday Wednesday about the terms they are offering to solid borrowers on loans up to $417,000.

In addition to rates, the terms include how much the lenders would collect in fees and discount points to make the loans. Buyers can pay extra points to lower rates, or avoid paying lender fees and for services such as appraisals by accepting higher rates.

The lender charges typically averaged 0.7% or 0.8% of the loan amount in the past. More recently, lenders have reported lower figures, an example being 0.4% of the loan amount in the latest Freddie Mac survey.

The yield on the 10-year Treasury note, a benchmark for long-term fixed mortgage rates, has fallen this week, which puts downward pressure on rates.