December 22, 2011 (Shirley Allen)
Interest rates for 30-year fixed rate mortgages along with the 5-year and 1-year ARMs fell to record lows this week while the 15-year fixed rate mortgage matched last week’s record low according to Freddie Mac’s Primary Mortgage Market Survey® (PMMS) for the week ending December 22nd.
Fixed Rate Mortgages:
Interest rates on fixed rate mortgages either matched or set new record lows again this week with the 30-year fixed rate mortgage setting a new record low averaging 3.91 percent with an average of 0.7 points, down from last week’s average of 3.94 percent. A year ago the 30-year fixed rate mortgage averaged 4.81 percent.
It was the also eighth consecutive week that 30-year fixed mortgage rates have been four percent or lower.
The 15-year fixed rate mortgage matched last week’s record low averaging 3.21 percent with an average of 0.8 points. At this time last year, the 15-year fixed rate mortgage averaged 4.15 percent.
Adjustable Rate Mortgages:
Interest rates for adjustable mortgages also dipped to new lows this week with the 5-year Treasury-indexed hybrid ARM setting another record low averaging 2.85 percent, down from 2.86 percent last week, with an average of 0.6 points. The 5-year adjustable rate mortgage averaged 3.75 percent a year earlier.
The 1-year Treasury-indexed adjustable rate mortgage reached its new low this week averaging 2.77 percent with an average of 0.6 points, down from 2.81 percent the previous week. A year ago, the 1 year adjustable rate mortgage averaged 3.40 percent.
Frank Nothaft, vice president and chief economist of Freddie Mac, stated, “Rates on 30-year fixed mortgages have been at or below 4 percent for the last eight weeks and now are almost 0.9 percentage points below where they were at the beginning of the year, which means that today’s homebuyers are paying over $1,200 less per year on a $200,000 loan. This greater affordability helped push existing home sales higher for the second consecutive month in November to an annualized pace of 4.42 million, the most since January. In addition, new construction of one-family homes also showed a back-to-back monthly gain in November to the largest increase since June. Moreover, homebuilder confidence in December rose to its highest reading since May 2010 according to the NAHB/Wells Fargo Housing Market Index.”
| 30-Year Fixed Rate Mortgages | US | NE | SE | NC | SW | W |
|---|---|---|---|---|---|---|
| Average | 3.91 | 3.92 | 3.97 | 3.90 | 3.95 | 3.85 |
| Fees & Points | 0.7 | 0.7 | 0.8 | 0.6 | 0.7 | 0.8 |
| 15-Year Fixed Rate Mortgages | US | NE | SE | NC | SW | W |
|---|---|---|---|---|---|---|
| Average | 3.21 | 3.24 | 3.23 | 3.19 | 3.27 | 3.17 |
| Fees & Points | 0.8 | 0.7 | 0.9 | 0.6 | 0.8 | 0.9 |
| 5/1-Year Adjustable Rate Mortgages | US | NE | SE | NC | SW | W |
|---|---|---|---|---|---|---|
| Average | 2.85 | 2.91 | 2.80 | 3.01 | 2.87 | 2.71 |
| Fees & Points | 0.6 | 0.6 | 0.7 | 0.4 | 0.7 | 0.6 |
| Margin | 2.74 | 2.74 | 2.75 | 2.73 | 2.76 | 2.74 |
| 1-Year Adjustable Rate Mortgages | US | NE | SE | NC | SW | W |
|---|---|---|---|---|---|---|
| Average | 2.77 | 2.88 | 2.64 | 3.02 | 2.63 | 2.64 |
| Fees & Points | 0.6 | 0.6 | 0.6 | 0.5 | 0.6 | 0.5 |
| Margin | 2.75 | 2.78 | 2.75 | 2.71 | 2.77 | 2.75 |
| The National Mortgage Rate Snapshot | One Year Ago | One Week Ago | ||||||
|---|---|---|---|---|---|---|---|---|
| 30-YR | 15-YR | 5/1-YR | 1-YR ARM | 30-YR | 15-YR | 5/1-YR | 1-YR ARM | |
| Average | 4.81 | 4.15 | 3.75 | 3.40 | 3.94 | 3.21 | 2.86 | 2.81 |
| Fees & Points | 0.7 | 0.7 | 0.6 | 0.7 | 0.8 | 0.8 | 0.6 | 0.6 |
| Margin | N/A | N/A | 2.75 | 2.76 | N/A | N/A | 2.75 | 2.76 |
Tags: 15 year fixed, 30 year fixed, fixed rate mortgage, freddie mac, interest rates, mortgage rates, 5-year hybrid, 1-year treasury
Source:
Freddie Mac
