More Good News for Mortgage Rate Shoppers

July 20, 2012 (Shirley Allen)

Weak economic news continued to fuel declining mortgage interest rates as rates on 30-year and 15-year fixed rate mortgages and the 5-year Treasury-indexed hybrid ARM all fell to new lows this week according to Freddie Mac’s Primary Mortgage Market Survey® (PMMS) for the week ending July 19th.

Fixed Rate Mortgages:

Interest rates on fixed rate mortgages declined to new record lows again this week, with the 30-year fixed rate averaging 3.53 percent with an average of 0.7 points, down from 3.56 the previous week. It was the 17th consecutive week that mortgage rates have been under 4.00 percent. A year ago, the 30-year fixed rate mortgage averaged 4.52 percent.

The 15-year fixed rate mortgage also set a new record low average of 2.83 percent with an average of 0.6 points, down from last week’s average of 2.86 percent. Mortgage rates for the 15-year fixed mortgage have been under 3.00 percent for eight consecutive weeks. At this time last year, the 15-year fixed rate mortgage averaged 3.66 percent.

Adjustable Rate Mortgages:

Interest rates for the 5-year Treasury-indexed hybrid ARM set a new record low, averaging 2.69 percent, with an average of 0.6 points, down from 2.74 percent the previous week. The 5-year adjustable rate mortgage averaged 3.27 percent a year earlier.

The 1-year Treasury-indexed adjustable rate mortgage averaged 2.69 percent with an average of 0.4 points, unchanged from last week’s average. A year ago, the 1-year adjustable rate mortgage averaged 2.97 percent.

Frank Nothaft, vice president and chief economist of Freddie Mac, stated, “With little signs of inflation and the Federal Reserve’s “Operation Twist” keeping U.S. Treasury bond yields in check, fixed mortgage rates are remaining low and helping to stir the housing market. For instance, the 12-month growth rate in the core Consumer Price Index has been in a narrow 2.1 to 2.3 percent band over the past nine months ending in June. Meanwhile, new construction on one-family homes rose for the fourth consecutive month in June to its strongest pace since April 2010 with builders restocking their lean inventories of new homes. In fact, homebuilder confidence for the next six months rose for the third month in a row in July to its highest reading since March 2007.”

30-Year Fixed Rate Mortgages US NE SE NC SW W
Average 3.53 3.56 3.58 3.52 3.56 3.49
Fees & Points 0.7 0.7 0.7 0.7 0.7 0.7

15-Year Fixed Rate Mortgages US NE SE NC SW W
Average 2.83 2.84 2.86 2.83 2.86 2.80
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 2.69 2.68 2.72 2.81 2.68 2.62
Fees & Points 0.6 0.6 0.6 0.5 0.7 0.7
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 2.75 2.67 2.66 2.73 2.66
Fees & Points 0.4 0.6 0.5 0.4 0.5 0.4
Margin 2.76 2.79 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 4.52   3.66   3.27   2.97   3.56   2.86   2.74   2.69  
Fees & Points 0.7   0.7   0.5   0.5   0.7   0.7   0.6   0.4  
Margin N/A N/A 2.74   2.76   N/A N/A 2.74   2.75

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