Mortgage Rates Attain New All-Time Record Lows Again
|September 8, 2011|
Mortgage rates, fixed and adjustable, once again hit all-time record lows amid market and employment concerns and economic uncertainty, according to Freddie Mac.
The previous record lows for fixed mortgage rates, and the 1-year ARM, were set the week of Aug. 18, 2011. The 5-Year ARM matched its all-time low set last week at 2.96 percent.
According to Freddie Mac’s Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 4.12 percent with an average 0.7 point for the week ending Sept. 8, down from last week when it averaged 4.22 percent. Last year at this time, the 30-year FRM averaged 4.35 percent.
"Market concerns over Eurozone sovereign debt default and a weak U.S. employment report for August placed downward pressure on Treasury bond yields and allowed fixed mortgage rates to hit new lows this week,” said Frank Nothaft, vice president and chief economist for Freddie Mac. “On net, the economy added no new jobs last month and was the weakest reading since September 2010. Meanwhile, the unemployment rate remained at 9.1 percent, marking its 31st consecutive month of being above 8 percent, the longest such stretch in 70 years.”
Meanwhile, the 15-year FRM this week averaged 3.33 percent with an average 0.6 point, down from last week when it averaged 3.39 percent. A year ago at this time, the 15-year FRM averaged 3.83 percent.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.96 percent this week, with an average 0.6 point, the same as last week when it averaged 2.96 percent. A year ago, the 5-year ARM averaged 3.56 percent.
The 1-year Treasury-indexed ARM averaged 2.84 percent this week with an average 0.6 point, down from last week when it averaged 2.89 percent. At this time last year, the 1-year ARM averaged 3.46 percent.