September 8, 2011 (Shirley Allen)
Last week’s stock market turmoil and bad employment numbers translated into record low mortgage rates this week according to Freddie Mac’s Primary Mortgage Market Survey® (PMMS).
Fixed Rate Mortgages (FRM):
Thirty year and the 15 year FRMs hit new all-time lows this week with the 30 year FRM averaging 4.12 percent, with an average of 0.7 points, down from 4.22 percent the previous week. The 30 year FRM averaged 4.35 percent a year earlier.
The 15 year FRM averaged 3.33 percent this week with an average 0.6 points, down from 3.39 percent reported the previous week, and down from 3.83 percent a year ago.
Adjustable Rate Mortgages (ARM):
ARM interest rates also reached all-time lows this week with the 5-year Treasury-indexed hybrid ARM remaining unchanged from last weeks all-time low of 2.96 percent, with an average of 0.6 points. The 5 year ARM averaged 3.56 percent a year earlier.
The 1-year Treasury-indexed ARM averaged 2.84 percent this week with an average of 0.6 points, down from 2.89 percent the previous week. A year ago, the 1 year ARM averaged 3.46 percent.
Frank Nothaft, vice president and chief economist of Freddie Mac, stated, “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. 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.”
“The Federal Reserve (Fed) painted a bleaker picture as well in its September 7th regional economic review. Seven of its 12 Districts reported more subdued views of business conditions. Many of the Fed’s manufacturing contacts downgraded or became more cautious about their near-term outlooks due to increased economic uncertainty,” he added.
|30-Year Fixed Rate Mortgages||US||NE||SE||NC||SW||W|
|Fees & Points||0.7||0.6||0.8||0.6||0.7||0.8|
|15-Year Fixed Rate Mortgages||US||NE||SE||NC||SW||W|
|Fees & Points||0.6||0.6||0.8||0.5||0.7||0.6|
|5/1-Year Adjustable Rate Mortgages||US||NE||SE||NC||SW||W|
|Fees & Points||0.6||0.6||0.6||0.4||0.7||0.6|
|1-Year Adjustable Rate Mortgages||US||NE||SE||NC||SW||W|
|Fees & Points||0.6||0.7||0.6||0.5||0.8||0.5|
|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|
|Fees & Points||0.7||0.6||0.6||0.7||0.7||0.6||0.6||0.6|
Tags: 15 year fixed, 30 year fixed, fixed rate mortgage, freddie mac, interest rates, mortgage rates, 5-year hybrid, 1-year treasury