All-Time Low: 30-Year Fixed-Rate Mortgage Averages 3.40 Percent
September 27, 2012
Fixed mortgage rates broke their previous average record lows helping to keep homebuyer affordability high and refinancing strong to support an already improving housing market, according to the latest Freddie Mac Primary Mortgage Market Survey. All mortgage products, except the 5-year ARM, averaged new all-time record lows.
"Fixed mortgage rates continued to decline this week, largely due to the Federal Reserve's purchases of mortgage securities, and should support an already improving housing market,” said Frank Nothaft, vice president and chief economist for Freddie Mac. “For instance, the S&P/Case-Shiller 20-city home price index rose 1.2 percent over the 12 months ending in July, reflecting the largest annual increase since August 2010. Moreover, 16 of the cities saw positive growth, led by Phoenix's 16.6 percent gain. Additionally, new home sales in July and August had the strongest two-month pace since March and April 2010."
The 30-year fixed-rate mortgage (FRM) averaged 3.40 percent with an average 0.6 point for the week ending September 27, 2012, down from last week when it averaged 3.49 percent. Last year at this time, the 30-year FRM averaged 4.01 percent.
Meanwhile, the 15-year FRM this week averaged 2.73 percent with an average .6 point, down from last week when it averaged 2.77 percent. A year ago at this time, the 15-year FRM averaged 3.28 percent.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.71 percent this week with an average .6 point, down from last week when it averaged 2.76 percent. A year ago, the 5-year ARM averaged 3.02 percent.
The 1-year Treasury-indexed ARM averaged 2.60 percent this week with an average .4 point, down from last week when it averaged 2.61 percent last week. At this time last year, the 1-year ARM averaged 2.83 percent.