Mortgage Rates Rise Slightly but Remain Near Record Lows

December 30, 2011 (Shirley Allen)

Mortgage interest rates increased slightly across the board this week but remained near last weeks record lows according to Freddie Mac’s Primary Mortgage Market Survey® (PMMS) for the week ending December 29th.

Fixed Rate Mortgages:

Interest rates on fixed rate mortgages remained near record lows with the 30-year fixed rate mortgage averaging 3.94 percent with an average of 0.7 points, up from last week’s record low average of 3.91 percent. A year ago the 30-year fixed rate
mortgage averaged 4.86 percent.

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

The 15-year fixed rate mortgage also increased slightly this week, averaging 3.24 percent with an average of 0.8 points. Last week, the 15-year mortgage rate matched its all-time low of 3.21 percent. At this time last year, the 15-year fixed rate mortgage averaged 4.15 percent.

Adjustable Rate Mortgages:

Interest rates for adjustable mortgages also increased this week with the 5-year Treasury-indexed hybrid ARM averaging 2.88 percent, up from last week’s record low of 2.85 percent, 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 also increased slightly this week averaging 2.78 percent with an average of 0.6 points, up from a record low of 2.77 percent the previous week. A year ago, the 1-year adjustable rate mortgage averaged 3.26 percent.

Frank Nothaft, vice president and chief economist of Freddie Mac, stated, “Mortgage rates ended the year hovering near historic lows in an already affordable housing market. For instance, the seasonally-adjusted S&P/Case-Shiller® 20-City Composite home price index in October was the lowest seen since March 2003. The largest hit areas were Las Vegas with the lowest reading since January 1997 and Atlanta which was since June 1998. It’s not surprising then that over 5 percent of households in December plan to purchase a home over the next six months, the highest share since May, according to The Conference Board.”

30-Year Fixed Rate Mortgages US NE SE NC SW W
Average 3.95 3.96 3.99 3.95 4.00 3.90
Fees & Points 0.7 0.7 0.7 0.7 0.7 0.8

15-Year Fixed Rate Mortgages US NE SE NC SW W
Average 3.24 3.28 3.23 3.22 3.29 3.19
Fees & Points 0.8 0.7 0.8 0.7 0.8 0.8

5/1-Year Adjustable Rate Mortgages US NE SE NC SW W
Average 2.88 2.95 2.79 3.03 2.90 2.72
Fees & Points 0.6 0.6 0.6 0.5 0.7 0.6
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 2.78 2.81 2.67 3.10 2.64 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 4.86   4.20   3.77   3.26   3.91   3.21   2.85   2.77  
Fees & Points 0.8   0.8   0.7   0.6   0.7   0.8   0.6   0.6  
Margin N/A N/A 2.75   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