Fixed Rate Mortgages Reach New Lows, ARMs Mixed

July 13, 2012 (Shirley Allen)

Mortgage rates for fixed rate loans fell for yet another week as yields on Treasury Bonds also continued to decline due to global and national economic uncertainty according to Freddie Mac’s Primary Mortgage Market Survey® (PMMS) for the week ending July 12th.

Fixed Rate Mortgages:

Interest rates on fixed rate mortgages declined to new record lows again this week, with the 30-year fixed rate averaging 3.56 percent with an average of 0.7 points, down from 3.62 the previous week. It was the 16th consecutive week that mortgage rates have been under 4.00 percent. A year ago, the 30-year fixed rate mortgage averaged 4.51 percent.

The 15-year fixed rate mortgage also set a new record low average of 2.86 percent with an average of 0.7 points, down from last week’s average of 2.89 percent. Mortgage rates for the 15-year fixed mortgage have been under 3.00 percent for seven consecutive weeks. At this time last year, the 15-year fixed rate mortgage averaged 3.65 percent.

Adjustable Rate Mortgages:

Interest rates for adjustable mortgages were mixed this week with the 5-year Treasury-indexed hybrid ARM averaging 2.74 percent, with an average of 0.6 points, down from 2.79 percent the previous week. The 5-year adjustable rate mortgage averaged 3.29 percent a year earlier.

The 1-year Treasury-indexed adjustable rate mortgage averaged 2.69 percent with an average of 0.5 points, up slightly from last week’s average of 2.68. A year ago, the 1-year adjustable rate mortgage averaged 2.95 percent.

Frank Nothaft, vice president and chief economist of Freddie Mac, stated, “Following a lackluster employment report for June, long-term U.S. Treasury bond yields eased somewhat this week allowing fixed mortgage rates to reach yet another record low. Only 80,000 net new jobs were added to the economy last month, not enough to lower the unemployment rate from 8.2 percent. This was the concern of the Federal Reserve’s monetary policy meeting held June 19-20. Minutes released from that meeting on July 11, revealed that a few members felt further monetary stimulus was needed to promote satisfactory growth in employment to meet the Committee’s goal.”

30-Year Fixed Rate Mortgages US NE SE NC SW W
Average 3.56 3.61 3.55 3.54 3.57 3.53
Fees & Points 0.7 0.6 0.7 0.7 0.7 0.7

15-Year Fixed Rate Mortgages US NE SE NC SW W
Average 2.86 2.89 2.85 2.85 2.84 2.85
Fees & Points 0.7 0.7 0.7 0.6 0.7 0.7

5/1-Year Adjustable Rate Mortgages US NE SE NC SW W
Average 2.74 2.73 2.76 2.81 2.73 2.70
Fees & Points 0.6 0.6 0.6 0.5 0.7 0.6
Margin 2.74 2.74 2.75 2.72 2.77 2.74

1-Year Adjustable Rate Mortgages US NE SE NC SW W
Average 2.69 2.69 2.67 2.69 2.73 2.66
Fees & Points 0.4 0.6 0.5 0.3 0.5 0.4
Margin 2.75 2.78 2.75 2.72 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 4.51   3.65   3.29   2.95   3.62   2.89   2.79   2.68  
Fees & Points 0.7   0.6   0.6   0.5   0.8   0.7   0.6   0.5  
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