Fifteen-Year Fixed Mortgage Rate Falls to New Record Low of 3.13 Percent

March 8, 2012 (Shirley Allen)

Interest rates on the 15-year fixed mortgage hit a new record low this week while rates on the 30-year fixed and the 1-year and 5-year ARMs hovered only one basis point above their record lows according to Freddie Mac’s Primary Mortgage Market Survey® (PMMS) for the week ending March 8th.

Fixed Rate Mortgages:

Interest rates on fixed rate mortgages fell this week with the 30-year fixed rate averaging 3.88 percent with an average of 0.8 points, down from an average of 3.90 percent last week. That’s only one basis point above its record low. A year ago, the 30-year fixed rate mortgage averaged 4.88 percent.

It was the 18th consecutive week that 30-year fixed mortgage rates have been four percent or less.

The 15-year fixed rate mortgage averaged a new all-time record low of 3.13 percent with an average of 0.8 points, down from last week’s average of 3.17 percent. At this time last year, the 15-year fixed rate mortgage averaged 4.15 percent.

Adjustable Rate Mortgages:

Interest rates for adjustable mortgages were mixed this week with the 5-year Treasury-indexed hybrid ARM averaging 2.81 percent, down from last week’s average of 2.83 percent, with an average of 0.7 points. That’s also just one basis point above its record low of 2.80 percent. The 5-year adjustable rate mortgage averaged 3.73 percent a year earlier.

The 1-year Treasury-indexed adjustable rate mortgage averaged 2.73 percent with an average of 0.6 points, up from last week’s all-time record low average of 2.72 percent. A year ago, the 1-year adjustable rate mortgage averaged 3.21 percent.

Frank Nothaft, vice president and chief economist of Freddie Mac, stated, “With these historically low rates and declining house prices, the typical family had more than double the income needed to purchase a median-priced home in January, according to the National Association of Realtors® Housing Affordability Index which registered the highest reading since records began in 1970. In fact, the Corelogic® National Home Price Index fell for the sixth consecutive month in January to the lowest level since January 2003. This high level of affordability likely contributed to the recent two-week rise ending March 2nd in mortgage applications for home purchases.”

30-Year Fixed Rate Mortgages US NE SE NC SW W
Average 3.88 3.89 3.90 3.90 3.92 3.84
Fees & Points 0.8 0.8 0.9 0.8 0.8 0.8

15-Year Fixed Rate Mortgages US NE SE NC SW W
Average 3.13 3.14 3.15 3.13 3.20 3.09
Fees & Points 0.8 0.8 0.9 0.7 0.8 0.8

5/1-Year Adjustable Rate Mortgages US NE SE NC SW W
Average 2.81 2.83 2.76 2.97 2.70 2.76
Fees & Points 0.7 0.8 0.7 0.6 0.9 0.7
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 2.73 2.80 2.61 2.92 2.66 2.64
Fees & Points 0.6 0.8 0.6 0.6 0.6 0.5
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 4.88   4.15   3.73   3.21   3.90   3.17   2.83   2.72  
Fees & Points 0.7   0.7   0.6   0.5   0.8   0.8   0.7   0.6  
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