All Mortgage Interest Rates Hit Record Lows

August 18, 2011 (Shirley Allen)

Mortgage interest rates hit record lows across the board last week as 30 year fixed rate mortgages hit their lowest level in fifty years according to Freddie Mac’s Primary Mortgage Market Survey® (PMMS).

Fixed Rate Mortgages (FRM):

Thirty year and the 15 year FRMs posted record lows with the 30 year FRM averaging 4.15 percent, with an average of 0.7 points, down from 4.32 percent reported the previous week. This week’s average breaks the previous record low of 4.17 percent set back in November of last year. The 30 year FRM averaged 4.42 percent a year earlier.

The 15 year FRM also set another historic low averaging 3.36 percent this week with an average 0.6 points, down from 3.50 percent reported the previous week, and down from 3.90 percent a year ago.

Adjustable Rate Mortgages (ARM):

ARM interest rates both continued to hit record lows with the 5-year Treasury-indexed hybrid ARM averaging 3.08 percent, with an average of 0.5 points, which was down from 3.13 percent the previous week. The 5 year ARM averaged 3.56 percent a year earlier.

The 1-year Treasury-indexed ARM averaged 2.86 percent this week with an average of 0.6 points, up from 2.89 percent the previous week. A year ago, the 1 year ARM averaged 3.53 percent.

Frank Nothaft, vice president and chief economist of Freddie Mac, stated, “The Federal Reserve’s policy statement last week and ongoing market concerns over the European debt market carried momentum into this week allowing all mortgage products in our survey to reach all-time record lows. For instance, 30-year fixed mortgage rates are now the lowest in over 50 years. In comparison, the Bureau of Economic Analysis estimated the average effective mortgage rate was about 5.3 percent on single-family loans outstanding during the second quarter of 2011.”

“Not surprising, many homeowners took advantage of this low mortgage rate environment and have already refinanced their loans. The refinance share of applications averaged nearly 70 percent of all mortgage activity in the first half of this year, according to our survey. In addition, an increasing share of refinancing borrowers chose to shorten their loan terms during the second quarter, according to Freddie Mac’s Quarterly Product Transition Report,” he added.

30-Year Fixed Rate Mortgages US NE SE NC SW W
Average 4.15 4.15 4.24 4.14 4.24 4.09
Fees & Points 0.7 0.6 0.7 0.6 0.7 0.7

15-Year Fixed Rate Mortgages US NE SE NC SW W
Average 3.36 3.38 3.41 3.27 3.46 3.33
Fees & Points 0.6 0.6 0.8 0.5 0.7 0.7

5/1-Year Adjustable Rate Mortgages US NE SE NC SW W
Average 3.08 3.15 2.98 3.20 3.17 2.94
Fees & Points 0.5 0.4 0.6 0.4 0.6 0.7
Margin 2.73 2.74 2.75 2.72 2.76 2.73

1-Year Adjustable Rate Mortgages US NE SE NC SW W
Average 2.86 3.03 2.64 3.23 2.77 2.64
Fees & Points 0.6 0.7 0.6 0.4 0.8 0.5
Margin 2.76 2.79 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 4.42   3.90   3.56   3.53   4.32   3.50   3.13   2.89  
Fees & Points 0.7   0.6   0.6   0.7   0.7   0.7   0.5   0.5  
Margin N/A N/A 2.74   2.77   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