Mortgage Rates Back To Record Lows
September 20, 2012
Fixed mortgage rates sank back to record lows helping to keep homebuyer affordability high, according to the latest Freddie Mac Primary Mortgage Market Survey.
The 30-year fixed-rate mortgage (FRM) matched its all-time record low averaging 3.49 percent. The 30-year FRM also had an average .6 point for the week ending Sept. 20. This is down from last week when it averaged 3.55 percent. Last year at this time, the 30-year FRM averaged 4.09 percent.
"Following the Federal Reserve's announcement of a new bond purchase plan, yields on mortgage-backed securities fell bringing average fixed mortgage rates to their all-time record lows which should aid in the ongoing housing recovery,” said Frank Nothaft, vice president and chief economist for Freddie Mac. “New construction on one-family homes rebounded in August, rising by 5.5 percent to the fastest pace since April 2010. In addition, existing home sales increased by 7.8 percent in August to its strongest pace since May 2010."
Meanwhile, the 15-year FRM fell to a new all-time record low averaging 2.77 percent with an average .6 point, down from last week when it averaged 2.85 percent. A year ago at this time, the 15-year FRM averaged 3.29 percent.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.76 percent this week with an average 0.6 point, up from last week when it averaged 2.72 percent. A year ago, the 5-year ARM averaged 3.02 percent.
The 1-year Treasury-indexed ARM averaged 2.61 percent this week with an average 0.4 point, the same as last week. At this time last year, the 1-year ARM averaged 2.82 percent.