Fixed Mortgage Rates Fall to Near Record Lows

Interest rates for both 30-year and 15-year fixed mortgages fell to near record lows this week according to Freddie Mac’s Primary Mortgage Market Survey® (PMMS) for the week ending April 26th.

Fixed Rate Mortgages:

Interest rates on fixed rate mortgages edged slightly lower this week with the 30-year fixed rate averaging 3.88 percent with an average of 0.7 points, down from an average of 3.90 percent last week. This week’s interest rate was only one basis point above its all-time low. A year ago, the 30-year fixed rate mortgage averaged 4.78 percent.

The 15-year fixed rate mortgage was also lower, averaging 3.12 percent with an average of 0.6 points, down from last week’s average of 3.13 percent. The interest rate for 15-year fixed rate mortgages was also only one basis point above its all-time low. At this time last year, the 15-year fixed rate mortgage averaged 3.97 percent.

Adjustable Rate Mortgages:

Interest rates for adjustable mortgages were mixed last week with the 5-year Treasury-indexed hybrid ARM averaging 2.85 percent, up from last week’s record low average of 2.78 percent, with an average of 0.6 points. The 5-year adjustable rate mortgage averaged 3.51 percent a year earlier.

The 1-year Treasury-indexed adjustable rate mortgage averaged 2.74 percent with an average of 0.6 points, down from last week’s average of 2.81 percent. A year ago, the 1-year adjustable rate mortgage averaged 3.15 percent.

Frank Nothaft, vice president and chief economist of Freddie Mac, stated, “Fixed mortgage rates held near record lows this week as the markets waited for the Federal Reserve’s (Fed) April 25th monetary policy announcement following two days of deliberations. The Fed stated that it expects economic growth to remain moderate and then pick up gradually. In addition, it noted that labor market conditions have improved in recent months and it anticipates the unemployment rate will decline gradually.”

“The housing market has also shown some improvement as well. The Federal Housing Finance Agency’s purchase-only house price index rose at a monthly rate of 0.3 percent in February. Moreover, 12 out of 20 metropolitan areas experienced increases over the month, according to the S&P/Case-Shiller® 20-city indexes, led by a 2.1 percent gain in Phoenix. New home sales in March were stronger than the consensus market forecast and February’s sales were revised upwards to the strongest pace in almost two years. However, the Fed’s statement warned that despite some signs of improvement, the housing sector still remains depressed,” he added.

30-Year Fixed Rate Mortgages US NE SE NC SW W
Average 3.88 3.90 3.88 3.90 3.90 3.84
Fees & Points 0.7 0.7 0.8 0.6 0.8 0.8

15-Year Fixed Rate Mortgages US NE SE NC SW W
Average 3.12 3.14 3.13 3.11 3.19 3.08
Fees & Points 0.6 0.6 0.7 0.5 0.7 0.7

5/1-Year Adjustable Rate Mortgages US NE SE NC SW W
Average 2.85 2.88 2.79 3.08 2.79 2.71
Fees & Points 0.6 0.7 0.6 0.4 0.8 0.6
Margin 2.74 2.72 2.75 2.73 2.76 2.74

1-Year Adjustable Rate Mortgages US NE SE NC SW W
Average 2.74 2.83 2.63 2.88 2.66 2.66
Fees & Points 0.6 0.7 0.6 0.4 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 4.78   3.97   3.51   3.15   3.90   3.13   2.78   2.81  
Fees & Points 0.7   0.7   0.6   0.6   0.8   0.7   0.7   0.6  
Margin N/A N/A 2.75   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