Interest Rates

Re "Real estate reality," editorial, Jan. 26 The "real estate reality" is that, during the last few decades, it was the mission of the federal government to make houses more affordable for more people. Lending standards were lowered to meet those goals. It would be the end of capitalism if the government tried to fix the floor on home prices, which must seek a level at which they again become affordable for new buyers. America needs to return to the "can you afford it" standard -- and reject the "are you qualified" standard of the recent past -- no matter how painful.

The average rate on a 30-year fixed mortgage fell this week as lawmakers negotiated an economic stimulus plan to revive the U.S. economy and resuscitate the housing market. The rate fell to 5.16% from 5.25% a week earlier, mortgage buyer Freddie Mac said. The rate fell to 4.96% the week of Jan. 15, the lowest on record.

The average rate on a 30-year fixed-rate mortgage dropped to 5.04% this week from 5.16% last week, mortgage company Freddie Mac said. A year ago, the rate averaged 6.04%. The average rate this week on a 15-year fixed-rate mortgage was 4.68%, down from 4.81% last week. Average rates on five-year, adjustable-rate mortgages declined to 5.04% from 5.23%. One-year, adjustable-rate mortgages fell to 4.80% from 4.94%. These rates do not include add-on fees known as points. The nationwide fee for 30-year mortgages averaged 0.7 point this week.

Mexico's central bank cut its benchmark interest rate by a quarter-point to boost the country's sagging economy. The cut to 7.5% was less than expected but nonetheless sent the peso tumbling to a new low of 14.98 to the U.S. dollar before recovering slightly. Analysts had expected the bank to cut its lending rate to 7.25% but said policymakers held back to protect the weakening currency, which threatens to spark continued inflation even as the country slips toward its own recession.

The average rate on a 30-year fixed-rate mortgage increased to 5.07% this week from 5.04% last week, mortgage company Freddie Mac said. Rates on 15-year fixed mortgages averaged 4.68% -- unchanged from last week. Five-year adjustable-rate mortgages increased to 5.06%, up from 5.04% last week. Rates on one-year adjustable-rate mortgages rose slightly, to 4.81% from 4.8%. These rates do not include add-on fees known as points. The nationwide fee averaged 0.7 point for 30- and 15-year fixed-rate mortgages and for five-year adjustable-rate mortgages.

The average rate on a 30-year fixed-rate mortgage increased to 5.15% this week from 5.07% last week, mortgage company Freddie Mac said. The average rate on a 15-year fixed-rate mortgage rose to 4.72% from 4.68%. Five-year adjustable-rate mortgages increased to 5.08% from 5.06%. One-year ARMs rose to 4.86% from 4.81%. The rates do not include add-on fees known as points. The nationwide fee averaged 0.7 of a point for 30-year and 15-year fixed-rate mortgages. The fee for five-year adjustable-rate mortgages averaged 0.6 of a point.

Europe's two leading central banks cut interest rates to record lows to boost their recession-mired economies. The cuts of half a percentage point by the European Central Bank and the Bank of England took rates down to 1.5% and 0.5%, respectively, as both banks try to stimulate growth amid lower consumer spending, rising unemployment and falling exports from the world economic crisis.

The average rate on a 30-year fixed-rate mortgage slipped to 5.03% this week from 5.15% last week, mortgage company Freddie Mac said. The average rate on a 15-year fixed-rate mortgage fell to 4.64% from 4.72%. Five-year adjustable-rate mortgages declined to 4.99% from 5.08%. One-year ARMs fell to 4.80% from 4.86%. These rates do not include add-on fees known as points. The nationwide fee averaged 0.7 of a point for 30-year and 15-year fixed-rate mortgages. The fee for five-year and one-year ARMs averaged 0.6 of a point and 0.5 of a point, respectively.

Re: "House approves credit card reform measure," May 1: Congress is missing the point with this bill. Whether credit card companies provide three days' or 45 days' notice that interest rates are being raised to 29% doesn't give cardholders the ability to pay off the balances or see their monthly payments soar. The real issue here is the reported $500 billion in outstanding credit card debt in the U.S. With interest rates jacked up to 30%, this debt is a time bomb waiting to explode and block economic recovery.

Mexico's central bank cut its key interest rate by three quarters of a point to spur growth for the recession-plagued economy. The bank lowered the benchmark rate to 5.25% from 6%, saying strong action was needed because the economy had contracted more than expected this year after a fall in exports to the United States and the national shutdown to control swine flu.