Average 15-Year Fixed-Rate Mortgage Breaks Barrier
May 31, 2012
Fixed mortgage rates followed bond yields lower to new all-time record lows, according to Freddie Mac’s Primary Mortgage Market Survey. The 15-year fixed-rate mortgage (FRM) fell below 3 percent for the first time in Freddie Mac's weekly survey, while the 30-year FRM set a new all-time record low for the fifth consecutive week.
For the week, the 15-year FRM averaged 2.97 percent with an average 0.7 point, down vchanged from last week when it averaged 3.04 percent. A year ago at this time, the 15-year FRM averaged 3.74 percent.
The 30-year FRM averaged 3.75 percent with an average 0.8 point for the week ending May 31, down from last week when it averaged 3.78 percent. Last year at this time, the 30-year FRM averaged 4.55 percent.
"Market concerns over tensions in the Eurozone led to a decline in long-term Treasury bond yields helping to bring fixed mortgage rates to new record lows this week,” said Frank Nothaft, vice president and chief economist for Freddie Mac.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.84 percent this week, with an average 0.6 point, up from last week when it averaged 2.83. A year ago, the 5-year ARM averaged 3.41 percent.
The 1-year Treasury-indexed ARM averaged 2.75 percent this week with an average 0.4 point, unchanged from last week. At this time last year, the 1-year ARM averaged 3.13 percent.