Mortgage Rates Hit Record Lows

May 3, 2012 (Shirley Allen)

Interest rates for both 30-year and 15-year fixed mortgages, and the 1-year ARM hit record lows this week according to Freddie Mac’s Primary Mortgage Market Survey® (PMMS) for the week ending May 3rd.

Fixed Rate Mortgages:

Interest rates on fixed rate mortgages edged slightly lower this week with the 30-year fixed rate averaging a new all-time record low of 3.84 percent with an average of 0.8 points, down from an average of 3.88 percent last week. A year ago, the 30-year fixed rate mortgage averaged 4.71 percent.

The 15-year fixed rate mortgage also hit a new record low, averaging 3.07 percent with an average of 0.7 points, down from last week’s average of 3.12 percent. At this time last year, the 15-year fixed rate mortgage averaged 3.89 percent.

Adjustable Rate Mortgages:

Interest rates for adjustable mortgages were mixed this week with the 5-year Treasury-indexed hybrid ARM averaging 2.85 percent, unchanged from last week, with an average of 0.7 points. The 5-year adjustable rate mortgage averaged 3.47 percent a year earlier.

The 1-year Treasury-indexed adjustable rate mortgage averaged a new record low of 2.70 percent with an average of 0.6 points, down from last week’s average of 2.74 percent. A year ago, the 1-year adjustable rate mortgage averaged 3.14 percent.

Frank Nothaft, vice president and chief economist of Freddie Mac, stated, “Signs of slowing economic growth and inflation remaining subdued allowed yields on Treasury bonds to ease somewhat and brought most mortgage rates to new all-time record lows this week. Real Gross Domestic Product rose at an annualized rate of 2.2 percent in the first quarter of this year, down from the previous quarter of 3.0 percent and below the market consensus forecast of 2.5 percent. In addition, the 12-month growth in the core price index of personal consumption expenditures was 2.0 percent in March which matches the Federal Reserve’s implied inflation target.”

30-Year Fixed Rate Mortgages US NE SE NC SW W
Average 3.84 3.85 3.84 3.87 3.86 3.79
Fees & Points 0.8 0.8 0.8 0.7 0.8 1.0

15-Year Fixed Rate Mortgages US NE SE NC SW W
Average 3.07 3.08 3.06 3.05 3.13 3.04
Fees & Points 0.7 0.7 0.8 0.6 0.7 0.9

5/1-Year Adjustable Rate Mortgages US NE SE NC SW W
Average 2.85 2.84 2.83 3.06 2.75 2.76
Fees & Points 0.7 0.7 0.6 0.4 0.8 0.7
Margin 2.74 2.74 2.75 2.73 2.76 2.74

1-Year Adjustable Rate Mortgages US NE SE NC SW W
Average 2.70 2.78 2.63 2.75 2.66 2.66
Fees & Points 0.6 0.8 0.6 0.4 0.6 0.5
Margin 2.76 2.78 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 4.71   3.89   3.47   3.14   3.88   3.12   2.85   2.74  
Fees & Points 0.7   0.7   0.6   0.5   0.7   0.6   0.6   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