Fifteen-Year Fixed Rate Falls to Record Low 2.77 Percent

September 21, 2012 (Shirley Allen)

Mortgage rates for fixed rate loans either fell or matched their previous record lows this week according to Freddie Mac’s Primary Mortgage Market Survey® (PMMS) for the week ending September 20th.

Fixed Rate Mortgages:

Interest rates on fixed rate mortgages moved lower this week, with the 30-year fixed rate matching its all time record low average of 3.49 percent with an average of 0.6 points, down from an average of 3.55 percent last week. It was the 26th consecutive week that mortgage rates have been under four percent. A year ago, the 30-year fixed rate mortgage averaged 4.09 percent.

Average 30-year rates were lowest in the Western portion of the United States while the highest rates were reported in the Southeastern area of the country.

The 15-year fixed rate mortgage hit a new record low average of 2.77 percent with an average of 0.6 points, down from an average of 2.85 percent last week. Mortgage rates for the 15-year fixed mortgage have been under three percent for 17 consecutive weeks. At this time last year, the 15-year fixed rate mortgage averaged 3.29 percent.

Adjustable Rate Mortgages:

Interest rates for adjustable-rate mortgages either remained unchanged or were up slightly from last week with the 5-year Treasury-indexed hybrid ARM averaging 2.76 percent, with an average of 0.6 points, up from last week’s average of 2.72 percent. The 5-year adjustable rate mortgage averaged 3.02 percent a year earlier.

The 1-year Treasury-indexed adjustable rate mortgage averaged 2.61 percent with an average of 0.4 points, unchanged for the second consecutive week. A year ago, the 1-year adjustable rate mortgage averaged 2.82 percent.

Frank Nothaft, vice president and chief economist of Freddie Mac, stated, “Following the Federal Reserve’s announcement of a new bond purchase plan, yields on mortgage-backed securities fell bringing average fixed mortgage rates to their all-time record lows which should aid in the ongoing housing recovery. New construction on one-family homes rebounded in August, rising by 5.5 percent to the fastest pace since April 2010. In addition, existing home sales increased by 7.8 percent in August to its strongest pace since May 2010.”

30-Year Fixed Rate Mortgages US NE SE NC SW W
Average 3.49 3.50 3.53 3.51 3.52 3.43
Fees & Points 0.6 0.6 0.7 0.6 0.6 0.6

15-Year Fixed Rate Mortgages US NE SE NC SW W
Average 2.77 2.78 2.81 2.78 2.82 2.72
Fees & Points 0.6 0.6 0.7 0.6 0.6 0.7

5/1-Year Adjustable Rate Mortgages US NE SE NC SW W
Average 2.76 2.81 2.75 2.91 2.69 2.63
Fees & Points 0.6 0.6 0.8 0.5 0.7 0.5
Margin 2.75 2.73 2.75 2.77 2.77 2.74

1-Year Adjustable Rate Mortgages US NE SE NC SW W
Average 2.61 2.56 2.69 2.58 2.70 2.60
Fees & Points 0.4 0.5 0.5 0.2 0.4 0.3
Margin 2.76 2.80 2.78 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 4.09   3.29   3.02   2.82   3.55   2.85   2.72   2.61  
Fees & Points 0.7   0.6   0.6   0.6   0.6   0.6   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