Mortgage Loan Rate Update

Here's the mortgage rate update from Freddie Mac as of February 28, 2008:

Loan term: Average rate %, (fees and points):

30-yr: 6.24% (0.5)

15-yr: 5.72% (0.5)

5/1-yr ARM: 5.43% (0.4)

1-yr ARM: 5.11% (0.7)

What's Freddie Mac? It's part of a process that takes place in the secondary mortgage market that is transparent to most homebuyers. A government-chartered corporation, Freddie Mac buys mortgages from home loan lenders, thus freeing those lenders to reinvest their money in the community by making even more loans. Fannie Mae is another such corporation with a similar mission.