Mortgage Rates Start the New Year At or Near Record Lows

January 5, 2012 (Shirley Allen)

Mortgage interest rates started the New Year the same way it ended the old year, at or near record lows, according to Freddie Mac’s Primary Mortgage Market Survey® (PMMS) for the week ending January 5th.

Fixed Rate Mortgages:

Interest rates on fixed rate mortgages remained at or near record lows with the 30-year fixed rate mortgage matching its record low average of 3.91 percent with an average of 0.8 points, down from last week’s average of 3.94 percent. A year ago the 30-year fixed rate mortgage averaged 4.77 percent.

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

The 15-year fixed rate mortgage increased slightly this week, averaging 3.23 percent with an average of 0.8 points. This week’s average rate is only two basis points above its record low. Last week, the 15-year mortgage rate averaged 3.24 percent. At this time last year, the 15-year fixed rate mortgage averaged 4.13 percent.

Adjustable Rate Mortgages:

Interest rates for adjustable mortgages were mixed this week with the 5-year Treasury-indexed hybrid ARM averaging 2.86 percent, down from last week’s average of 2.88 percent, with an average of 0.7 points. The average rate this week is only one basis point above its record low. The 5-year adjustable rate mortgage averaged 3.75 percent a year earlier.

The 1-year Treasury-indexed adjustable rate mortgage increased slightly this week averaging 2.80 percent with an average of 0.6 points, up from an average of 2.78 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, “Fixed mortgage rates started the year a little lower this week just as recent data reports indicate the housing market and manufacturing industry are showing signs of improvement. Pending existing home sales in November jumped 7.3 percent, nearly five times greater than the market consensus forecast, to its strongest pace since April 2010. In addition, construction spending rose 1.2 percent in November, supported by the residential sector which exhibited its fourth consecutive monthly increase. Similarly, manufacturing expanded in December at the fastest pace in six months.”

30-Year Fixed Rate Mortgages US NE SE NC SW W
Average 3.91 3.93 3.92 3.91 3.95 3.86
Fees & Points 0.8 0.7 0.8 0.6 0.8 0.9

15-Year Fixed Rate Mortgages US NE SE NC SW W
Average 3.23 3.27 3.21 3.21 3.28 3.19
Fees & Points 0.8 0.7 0.8 0.6 0.8 0.8

5/1-Year Adjustable Rate Mortgages US NE SE NC SW W
Average 2.86 2.98 2.78 2.90 2.92 2.74
Fees & Points 0.7 0.7 0.7 0.5 0.7 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 2.80 2.80 2.78 3.15 2.64 2.66
Fees & Points 0.6 0.8 0.6 0.4 0.6 0.5
Margin 2.76 2.78 2.78 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 4.77   4.13   3.75   3.24   3.95   3.24   2.88   2.78  
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   2.76  

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