Mortgage Interest Rates Remain Just Above Record Lows

September 1, 2011 (Shirley Allen)

Weaker economic data kept mortgage rates near their 50 year lows while the 5/1 Treasury-indexed hybrid ARM reached a new low of 2.96 percent according to Freddie Mac’s Primary Mortgage Market Survey® (PMMS).

Fixed Rate Mortgages (FRM):

Thirty year and the 15 year FRMs remained near their historic lows last week with the 30 year FRM averaging 4.22 percent, with an average of 0.7 points, unchanged from the previous week. The 30 year FRM averaged 4.32 percent a year earlier.

The 15 year FRM averaged 3.39 percent this week with an average 0.6 points, down from 3.44 percent reported the previous week, and down from 3.83 percent a year ago. The 15-year FRM reached its all-time low two weeks ago at 3.36 percent.

Adjustable Rate Mortgages (ARM):

ARM interest rates inched downward last week with the 5-year Treasury-indexed hybrid ARM falling for the fifth consecutive week to a new all-time low of 2.96 percent, with an average of 0.6 points, which was down from 3.07 percent the previous week. The 5 year ARM averaged 3.54 percent a year earlier.

The 1-year Treasury-indexed ARM averaged 2.89 percent this week with an average of 0.6 points, down from 2.93 percent the previous week. A year ago, the 1 year ARM averaged 3.50 percent.

Frank Nothaft, vice president and chief economist of Freddie Mac, stated, “Weaker economic data reports eased upward pressure on mortgage rates this week and kept them at or near all-time record lows. The economy grew at a slower rate of 1 percent in the second quarter than was originally reported due to a smaller increase in inventories and fewer exports. In addition, consumer confidence in August fell to the lowest reading since April 2009, according to The Conference Board.”

“Recently released data on the housing market also showed less strength as well. The S&P/Case-Shiller® National Index fell 5.9 percent between the second quarters of 2010 and 2011, representing the largest yearly decrease since the third quarter of 2009. Moreover, July’s pending sales of existing homes fell at a monthly rate of 1.3 percent, the first decline since April 2011,” he added.

30-Year Fixed Rate Mortgages US NE SE NC SW W
Average 4.22 4.25 4.26 4.22 4.28 4.15
Fees & Points 0.7 0.7 0.8 0.5 0.7 0.8

15-Year Fixed Rate Mortgages US NE SE NC SW W
Average 3.39 3.42 3.41 3.32 3.47 3.34
Fees & Points 0.6 0.7 0.8 0.4 0.7 0.6

5/1-Year Adjustable Rate Mortgages US NE SE NC SW W
Average 2.96 2.98 2.92 3.09 3.03 2.87
Fees & Points 0.6 0.6 0.7 0.3 0.7 0.6
Margin 2.74 2.75 2.75 2.72 2.76 2.73

1-Year Adjustable Rate Mortgages US NE SE NC SW W
Average 2.89 3.25 2.66 2.95 2.79 2.68
Fees & Points 0.6 0.6 0.6 0.4 0.8 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 4.32   3.83   3.54   3.50   4.22   3.44   3.07   2.93  
Fees & Points 0.7   0.6   0.6   0.7   0.7   0.6   0.5   0.5  
Margin N/A N/A 2.75   2.77   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