Fixed mortgage rates at lowest levels of 2011

Fixed mortgage rates are at their lowest level of the year, with the average rate for a 30-year loan at 4.63 percent. Fixed mortgage rates for a 15-year loan now average 3.82 percent, Freddie Mac says.

NEW YORK (AP) — Fixed mortgage rates have fallen to their lowest levels of the year, giving Americans more incentive to buy homes or refinance their loans.

Freddie Mac said Thursday the average rate on the 30-year loan fell to 4.63 percent from 4.71. The average rate on the 15-year fixed mortgage slipped to 3.82 percent from 3.89 percent. Both are at their lowest points since December. It marked the fourth straight weekly decline.

Rates track the yield on the 10-year Treasury note, which fell close to its lowest level of the year this week.

Low mortgage rates could boost the struggling housing market, which has dragged on the economy. Home sales are far below healthy levels. Most homebuilders reported a drop in new orders in the first three months of the year, an indication of future activity.

Job worries and strict lending standards have kept potential buyers on the sidelines. And the high number of foreclosures is forcing home prices down, leaving some would-be buyers concerned that prices have yet to bottom out.

Fewer homeowners had their houses repossessed by banks in April than a year ago, foreclosure listing firm RealtyTrac Inc. said Thursday. But that's because it's taking lenders longer to take back homes already in the foreclosure process because of paperwork delays. Last fall, evidence surfaced that lenders pushed through foreclosures without properly reviewing each case.

The holdup threatens to push back a resolution to the foreclosure crisis and a meaningful recovery in housing.

To calculate average mortgage rates, Freddie Mac collects rates from lenders across the country on Monday through Wednesday of each week. Rates often fluctuate significantly, even within a single day.

The average rate on a five-year adjustable-rate mortgage fell to 3.41 percent from 3.47 percent. The five-year adjustable-rate loan hit 3.25 percent last month, the lowest rate on records dating back to January 2005.

The average rate on a one-year adjustable-rate loan fell to 3.11 percent from 3.14 percent. That marked the lowest level for the rate on the 1-year ARM in the last year.

The rates do not include add-on fees, known as points. One point is equal to 1 percent of the total loan amount. The average fee for the 30-year fixed loan and 15-year fixed loan in Freddie Mac's survey was 0.7 point. The average fee for the five-year ARM was 0.6 point and the average fee for the 1-year ARM was 0.5 point.