Interest Rates on ARMs at Record Lows for Second Consecutive Week

December 1, 2011 (Shirley Allen)

Interest rates on fixed rate mortgages remained about the same as last week while interest rates for adjustable rate mortgages averaged new record lows for the second consecutive week according to Freddie Mac’s Primary Mortgage Market Survey® (PMMS) for the week ending December 1st.

Fixed Rate Mortgages:

Interest rates on fixed rate mortgages showed little movement last week with the 30-year fixed rate mortgage averaging 4.00 percent with an average of 0.7 points, up from last week’s average of 3.98 percent. A year ago the 30-year fixed rate mortgage averaged 4.46 percent.

It was the fifth consecutive week that 30-year fixed mortgage rates have been four percent or lower.

The 15-year fixed rate mortgage remained unchanged from last week, averaging 3.30 percent with an average of 0.8 points, up from 0.7 points last week. Last year at this time, the 15-year fixed rate mortgage averaged 3.81 percent.

Adjustable Rate Mortgages:

Adjustable rate mortgage interest rates averaged new record lows again this week with the 5-year Treasury-indexed hybrid ARM averaging 2.90 percent, down from 2.91 percent last week, with an average of 0.6 points. The 5-year adjustable rate mortgage averaged 3.49 percent a year earlier.

The 1-year Treasury-indexed adjustable rate mortgage also hit a new record low for the second consecutive week, averaging 2.78 percent with an average of 0.6 points, down from 2.79 percent the previous week. A year ago, the 1 year adjustable rate mortgage averaged 3.25 percent.

Frank Nothaft, vice president and chief economist of Freddie Mac, stated, “Mortgage rates were little changed this past week, with the average 30-year fixed-rate mortgage at or below 4.00 percent for the fifth consecutive week. This week the Federal Reserve released its latest Beige Book review of regional economic conditions, noting that the residential real estate market generally remained sluggish through the first half of the fourth quarter but that the economy expanded at a moderate pace in 11 of its 12 Districts. The extraordinarily low mortgage rates of the past month may provide a needed spur to housing activity.”

“Economic data released this past week included the Conference Board’s consumer confidence index, which had the largest jump in November since April 2003, and the S&P/Case-Shiller© 20-city composite index (seasonally adjusted), which fell for the fifth consecutive month in September to the lowest reading since April 2003. More optimistic consumers, lower house prices, and bargain mortgage rates may have contributed to the 10.4 percent jump in pending home sales in October to the strongest pace since November 2010 and may bode well for future home sales,”he added.

30-Year Fixed Rate Mortgages US NE SE NC SW W
Average 4.00 4.00 4.06 3.97 4.04 3.96
Fees & Points 0.7 0.7 0.9 0.7 0.7 0.8

15-Year Fixed Rate Mortgages US NE SE NC SW W
Average 3.30 3.30 3.31 3.28 3.37 3.28
Fees & Points 0.8 0.7 0.9 0.6 0.8 0.9

5/1-Year Adjustable Rate Mortgages US NE SE NC SW W
Average 2.90 3.02 2.84 2.99 2.92 2.75
Fees & Points 0.6 0.6 0.7 0.5 0.7 0.7
Margin 2.74 2.73 2.75 2.73 2.76 2.73

1-Year Adjustable Rate Mortgages US NE SE NC SW W
Average 2.78 2.83 2.59 3.09 2.66 2.66
Fees & Points 0.6 0.8 0.6 0.3 0.6 0.5
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 4.46   3.81   3.49   3.25   3.98   3.30   2.91   2.79  
Fees & Points 0.8   0.7   0.6   0.6   0.7   0.7   0.6   0.6  
Margin N/A N/A 2.75   2.76   N/A N/A 2.75   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