Mortgage Rates and Overall Home Prices Down
Home prices fell 2.1% from the fourth quarter of last year to the first quarter of 2010, and average mortgage rates are at their lowest of the year, according to data released by Freddie Mac.
The mortgage buyer's Conventional Mortgage Home Price Index fell 2.1% on a quarter-to-quarter basis but the index for the first quarter of 2010 fell 1.1% from the same period in 2009.
The largest decline from the fourth quarter of 2009 to the first quarter of 2010 was a 3.2% drop in the West North Central Division, which includes Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota. The smallest decline was a 0.4% drop in the Middle Atlantic Region, which includes New Jersey, New York and Pennsylvania.
The largest year-over-year decline was a 6.1% drop in the Mountain Division, which includes Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah and Wyoming. The largest increase during that period was a 4.5% rise in the Pacific Division, which includes Alaska, California, Hawaii, Oregon and Washington.
Last week, the average rate on a 30-year fixed rate mortgage was 4.78% and the average 15-year fixed rate mortgage was 4.21%; both were the lowest of 2010.
Last week's average for a five-year adjustable rate mortgage was 3.97% and the average for a one-year ARM was 3.95%.