After three straight weeks of declines the rate for a 30 year fixed mortgage dropped to its lowest level of the year to 4.71 percent down from 4.78 percent the previous week as we head into the peak buying season. That is above the 40-year low of 4.17 percent which was reached last November.
Sadly, lower rates have not done much to help boost home sales; however, most home sales happen between April and August.
Furthermore, many homebuilders have also reported a drop in sales in the first three months of 2011.
In order to calculate average mortgage rates, Freddie Mac gathers together rates from lenders around the nation between Monday and Wednesday each week. Sometimes mortgage rates can often change significantly, even in one day.