Mortgage rates back below 5%

Atlanta Business Chronicle by Jeff Clabaugh

Long-term mortgage rates are back below 5 percent, according to Freddie Mac’s (NYSE: FRE) weekly rate report.

The average rate on a 30-year fixed-rate mortgage fell to 4.97 percent in the week ending Feb. 11, down from 5.01 percent last week. A year ago, 30-year mortgages were averaging 5.16 percent, said Freddie Mac, which has a regional office in Atlanta.

It is the third week this year that long-term mortgage rates have dropped below 5 percent.
Low rates are attracting more existing homeowners than buyers.

Since the beginning of 2010, two out of three mortgage applications have been to refinance an existing mortgage, according to the Mortgage Bankers Association.

Low rates are also helping to boost sales. The National Association of Realtors Thursday reported that sales of existing homes rose by 14 percent in the fourth quarter.