Interest Rates on Fixed Mortgages Hit All-Time Low

December 15, 2011 (Shirley Allen)

Interest rates for both 15-year and 30-year fixed rate mortgages along with the 5-year ARM set or matched record lows this week according to Freddie Mac’s Primary Mortgage Market Survey® (PMMS) for the week ending December 15th.

Fixed Rate Mortgages:

Interest rates on fixed rate mortgages were at record lows this week with the 30-year fixed rate mortgage matching its previous record low average of 3.94 percent with an average of 0.8 points, down from last week’s average of 3.99 percent. A year ago the 30-year fixed rate mortgage averaged 4.83 percent.

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

The 15-year fixed rate mortgage set a new record low, averaging 3.21 percent this week with an average 0.8 points, down from 3.27 percent the previous week. Interest rates on the 15-year fixed mortgage averaged 4.17 percent a year ago.

Adjustable Rate Mortgages:

Interest rates for adjustable mortgages were mixed this week with the 5-year Treasury-indexed hybrid ARM setting a new record low averaging 2.86 percent, down from 2.93 percent last week, with an average of 0.6 points. The 5-year adjustable rate mortgage averaged 3.77 percent a year earlier.

The 1-year Treasury-indexed adjustable rate mortgage averaged 2.81 percent with an average of 0.6 points, up from 2.80 percent the previous week. A year ago, the 1 year adjustable rate mortgage averaged 3.35 percent.

Frank Nothaft, vice president and chief economist of Freddie Mac, stated, “Mortgage rates were at or near all-time record lows this week amid a rough environment for housing. In its December 13th monetary policy announcement, the Federal Reserve reiterated the housing market remains depressed. Over the first nine months of 2011, households lost almost $400 billion in property values which contributed to a $1.4 trillion reduction in overall net worth. In addition, serious delinquency rates (90 or more days delinquent plus foreclosures) on mortgages increased slightly between June 30 and September 30 of the year, breaking a six-quarter consecutive decline, according to the Mortgage Bankers Association.”

30-Year Fixed Rate Mortgages US NE SE NC SW W
Average 3.94 3.94 4.00 3.93 4.00 3.88
Fees & Points 0.8 0.8 0.8 0.6 0.7 0.8

15-Year Fixed Rate Mortgages US NE SE NC SW W
Average 3.21 3.21 3.23 3.19 3.28 3.17
Fees & Points 0.8 0.8 0.9 0.6 0.8 0.9

5/1-Year Adjustable Rate Mortgages US NE SE NC SW W
Average 2.86 2.86 2.82 3.02 2.89 2.73
Fees & Points 0.6 0.6 0.6 0.4 0.6 0.6
Margin 2.75 2.75 2.75 2.73 2.76 2.74

1-Year Adjustable Rate Mortgages US NE SE NC SW W
Average 2.81 2.93 2.69 3.08 2.64 2.66
Fees & Points 0.6 0.7 0.7 0.5 0.6 0.5
Margin 2.76 2.78 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 4.83   4.17   3.77   3.35   3.99   3.27   2.93   2.80  
Fees & Points 0.7   0.7   0.7   0.7   0.7   0.8   0.5   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