The average interest on the benchmark mortgage rate held below the 6% threshold for the fourth consecutive week as 30-year loans remained at 5.88% this week, according to Freddie Mac.
“Once again, mortgage rates held relatively steady this week amid release of subdued economic data,” said Freddie Mac chief economist Frank Nothaft, who cited a government report on the number of jobs eliminated by businesses last month. There was a slight downward movement involving the other mortgage rates as 15-year, fixed loans held steady at 5.42%, five-yearadjustable rate mortgages fell 0.03% to 5.56%, and one-year ARMs declined 0.01% to 5.18%.
The April Fed meeting is rapidly approaching and again, we expect a quarter point drop in the discount rate which will lead to lower mortgage rates in May. More good news is that theNashville housing market has growth each of the first four months of 2008. Pending home sales are up and “stale” inventory has decreased. Nashville is no where near its record 2007 numbers, but the market has certainly stabilized.
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