May 31, 2012 (Shirley Allen)
(Revised) Turmoil in the Eurozone pushed Treasury bonds to 66-year lows this week resulting in another round of record low rates for fixed rate mortgages according to Freddie Mac’s Primary Mortgage Market Survey® (PMMS) for the week ending May 31st.
Fixed Rate Mortgages:
Interest rates on fixed rate mortgages fell lower this week with the 30-year fixed rate averaging a new all-time record low of 3.75 percent with an average of 0.8 points, down from an average of 3.78 percent last week. A year ago, the 30-year fixed rate mortgage averaged 4.55 percent.
The 15-year fixed rate mortgage fell under three percent for the first time, averaging 2.97 percent with an average of 0.7 points, down from an average of 3.04 percent last week. At this time last year, the 15-year fixed rate mortgage averaged 3.74 percent.
Adjustable Rate Mortgages:
Interest rates for adjustable mortgages remained at about the same levels as last week with the 5-year Treasury-indexed hybrid ARM averaging 2.84 percent, with an average of 0.6 points, up from last week’s average of 2.83 percent. The 5-year adjustable rate mortgage averaged 3.41 percent a year earlier.
The 1-year Treasury-indexed adjustable rate mortgage averaged 2.75 percent with an average of 0.4 points, down from last week’s average of 2.78 percent. A year ago, the 1-year adjustable rate mortgage averaged 3.31 percent.
Frank Nothaft, vice president and chief economist of Freddie Mac, stated, “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. Compared to a year ago, rates on 30-year fixed mortgage rates are almost 0.9 percentage points lower which translates into nearly $1,200 less in annual payments on a $200,000 loan. Meanwhile, the S&P/Case-Shiller 20-city composite home price index (not seasonally adjusted) showed annual home-value gains in March in seven cities and a monthly gain in 12 cities.”
30-Year Fixed Rate Mortgages | US | NE | SE | NC | SW | W |
---|---|---|---|---|---|---|
Average | 3.75 | 3.76 | 3.76 | 3.77 | 3.79 | 3.70 |
Fees & Points | 0.8 | 0.8 | 0.8 | 0.7 | 0.7 | 0.9 |
15-Year Fixed Rate Mortgages | US | NE | SE | NC | SW | W |
---|---|---|---|---|---|---|
Average | 2.97 | 2.98 | 2.97 | 2.97 | 3.04 | 2.94 |
Fees & Points | 0.7 | 0.7 | 0.8 | 0.6 | 0.7 | 0.9 |
5/1-Year Adjustable Rate Mortgages | US | NE | SE | NC | SW | W |
---|---|---|---|---|---|---|
Average | 2.84 | 2.85 | 2.85 | 2.97 | 2.82 | 2.75 |
Fees & Points | 0.6 | 0.7 | 0.6 | 0.5 | 0.7 | 0.6 |
Margin | 2.74 | 2.74 | 2.75 | 2.73 | 2.77 | 2.74 |
1-Year Adjustable Rate Mortgages | US | NE | SE | NC | SW | W |
---|---|---|---|---|---|---|
Average | 2.75 | 2.88 | 2.67 | 2.75 | 2.73 | 2.70 |
Fees & Points | 0.4 | 0.5 | 0.5 | 0.4 | 0.5 | 0.4 |
Margin | 2.76 | 2.78 | 2.75 | 2.73 | 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 | 4.55 | 3.74 | 3.41 | 3.13 | 3.78 | 3.04 | 2.83 | 2.75 |
Fees & Points | 0.6 | 0.7 | 0.6 | 0.6 | 0.8 | 0.7 | 0.6 | 0.4 |
Margin | N/A | N/A | 2.74 | 2.76 | N/A | N/A | 2.74 | 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