Mortgage rates drop for third week; 30-year at 5.14%(Mortgage New , Yonkers NY )

Mortgage rates drop for third week; 30-year at 5.14%(Mortgage New , Yonkers NY )

The Interest Rate on 30 years dropped to 5.14% ending week for July 16, 2009. This is lowest since the week ended may 28, the drop in rate is a positive for the housing market, which has been showing signs of stabilization, with sales rising and home price declines moderating in many regions of the country.

Mortgage rates remained above 5% for a seventh straight week. Experts say mortgage rates at 5% and below are the levels needed to make a significant impact on home loan demand.

Treasury yields, which are linked to mortgage rates, have fallen recently, with mortgage rates responding in kind.

"For a 30-year fixed-rate mortgage, the rate reduction over the past five weeks translates into a monthly payment saving of $56 on a $200,000 loan," Frank Nothaft, Freddie Mac vice president and chief economist, said in a statement.

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