Mortgage Interest Rates Fall to New Lows

February 2, 2012 (Shirley Allen)

Interest rates for both the 30-year and 15-year fixed mortgages and the 5-year ARM hit new all-time lows this week as strong year-end housing data was muted by weaker than expected overall economic news according to Freddie Mac’s Primary Mortgage Market Survey® (PMMS) for the week ending February 2nd.

Fixed Rate Mortgages:

Interest rates on fixed rate mortgages set new all-time lows this week with the 30-year fixed rate mortgage averaging 3.87 percent with an average of 0.8 points, down from last week’s average of 3.98 percent. The previous all-time average low for the 30-year fixed rate mortgage was set two weeks ago at 3.88 percent. A year ago, the 30-year fixed rate mortgage averaged 4.81 percent.

It was the 13th consecutive week that 30-year fixed mortgage rates have been four percent or less.

The 15-year fixed rate mortgage averaged 3.14 percent with an average of 0.8 points, down from last week’s average of 3.24 percent. The previous all-time average low for the 15-year fixed rate mortgage was 3.16 percent, set three weeks ago. At this time last year, the 15-year fixed rate mortgage averaged 4.08 percent.

Adjustable Rate Mortgages:

Interest rates for adjustable mortgages were mixed this week with the 5-year Treasury-indexed hybrid ARM setting a new all-time low averaging 2.80 percent, down from last week’s average of 2.85 percent, with an average of 0.7 points. The previous all-time average low for the 5-year ARM was set two weeks ago at 2.82 percent. The 5-year adjustable rate mortgage averaged 3.69 percent a year earlier.

The 1-year Treasury-indexed adjustable rate mortgage increased slightly this week averaging 2.76 percent with an average of 0.6 points, up from an average of 2.74 percent a week ago. Last week’s average rate was the all-time record low for the 1-year ARM and had remained at the rate for the previous two weeks. A year ago, the 1-year adjustable rate mortgage averaged 3.26 percent.

Frank Nothaft, vice president and chief economist of Freddie Mac, stated, “Most mortgage rates eased to all-time record lows this week as fourth quarter growth in the economy fell short of market projections. The Gross Domestic Product rose 2.8 percent in the final three months of 2011, below the market consensus forecast of 3.0 percent, while consumer spending in December was flat. One bright spot, however, was that fixed residential investment increased for the third consecutive quarter and residential construction spending rebounded in December, rising 0.7 percent.”

30-Year Fixed Rate Mortgages US NE SE NC SW W
Average 3.87 3.86 3.90 3.86 3.91 3.83
Fees & Points 0.8 0.7 0.8 0.7 0.8 0.8

15-Year Fixed Rate Mortgages US NE SE NC SW W
Average 3.14 3.14 3.16 3.11 3.20 3.12
Fees & Points 0.8 0.8 0.9 0.6 0.8 0.8

5/1-Year Adjustable Rate Mortgages US NE SE NC SW W
Average 2.80 2.88 2.82 2.85 2.77 2.71
Fees & Points 0.7 0.7 0.7 0.5 0.9 0.7
Margin 2.74 2.73 2.75 2.73 2.76 2.74

1-Year Adjustable Rate Mortgages US NE SE NC SW W
Average 2.76 2.90 2.63 2.88 2.64 2.68
Fees & Points 0.6 0.7 0.6 0.5 0.6 0.5
Margin 2.76 2.79 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 4.81   4.08   3.69   3.26   3.98   3.24   2.85   2.74  
Fees & Points 0.8   0.8   0.7   0.6   0.7   0.8   0.7   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