Real estate notebook

Published 8:04 pm Friday, March 26, 2010

Mortgages

Mortgage rates moved slightly higher but remained just below 5 percent this week, as a Federal Reserve program that has maintained rates near record lows prepares to end.

The average rate on a 30-year fixed rate mortgage inched up to 4.99 percent this week from 4.96 percent last week, mortgage finance company Freddie Mac said Thursday.

Rates on 30-year fixed mortgages fell to a record low of 4.71 percent in December and have hovered around 5 percent since. Rates have been kept down by the Fed’s $1.25 trillion program to buy up mortgage-backed securities issued by Freddie Mac and sibling firm Fannie Mae.

The Fed’s program is set to end March 31. Some analysts fear that mortgage rates could rise once the program ends, weakening the fragile recovery in housing and the overall economy.

Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day, often in line with long-term Treasury bonds.

This week, the average rate on a 15-year fixed-rate mortgage was 4.34 percent, up a bit from 4.33 percent last week, according to Freddie Mac.

Send your real estate news to Mike Benbow, Business editor, The Herald, P.O. Box 930, Everett, WA 98206, by fax at 425-339-3435 or by e-mail at economy@heraldnet.com.