Record Lows Rates on the Menu for Mortgage Loans

May 25, 2012 (Shirley Allen)

Interest rates for fixed mortgages held steady this week with the 30-year fixed dropping a notch to a new record low while the 15-year fixed remained unchanged from last week’s record low according to Freddie Mac’s Primary Mortgage Market Survey® (PMMS) for the week ending May 24th.

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 3.78 percent with an average of 0.8 points, down from an average of 3.79 percent last week. A year ago, the 30-year fixed rate mortgage averaged 4.60 percent.

The 15-year fixed rate mortgage remained at last week’s record low, averaging 3.04 percent with an average of 0.7 points. At this time last year, the 15-year fixed rate mortgage averaged 3.78 percent.

Adjustable Rate Mortgages:

Interest rates for adjustable mortgages were higher this week with the 5-year Treasury-indexed hybrid ARM averaging 2.83 percent, with an average of 0.6 points, up from last week’s average of 2.81 percent. The 5-year adjustable rate mortgage averaged 3.41 percent a year earlier.

The 1-year Treasury-indexed adjustable rate mortgage averaged 2.78 percent with an average of 0.5 points, up from last week’s average of 2.73 percent. A year ago, the 1-year adjustable rate mortgage averaged 3.11 percent.

Frank Nothaft, vice president and chief economist of Freddie Mac, stated, “Mortgage rates were virtually unchanged this week with fixed-rate loans remaining at record lows and helping to drive homebuyer affordability. The National Association of Realtor’s Housing Affordability Index reached an all-time record high in the first quarter of this year since records began in 1970. In April, existing home sales rose to the highest rate since January with an annualized rate of 4.62 million homes with purchases increasing in all four Census Regions. Similarly, sales of new homes also rose last month, beating the market consensus forecast. In addition, the Federal Housing Finance Agency purchase-only house price index rose 0.4 between the first quarter of 2011 and 2012 and represented the first 4-quarter increase since the first quarter of 2007.”

30-Year Fixed Rate Mortgages US NE SE NC SW W
Average 3.78 3.78 3.79 3.83 3.81 3.74
Fees & Points 0.8 0.7 0.7 0.6 0.7 0.9

15-Year Fixed Rate Mortgages US NE SE NC SW W
Average 3.04 3.04 3.05 3.06 3.09 2.99
Fees & Points 0.7 0.6 0.7 0.6 0.6 0.8

5/1-Year Adjustable Rate Mortgages US NE SE NC SW W
Average 2.83 2.82 2.84 2.99 2.77 2.76
Fees & Points 0.6 0.7 0.6 0.5 0.7 0.6
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 2.75 2.88 2.67 2.75 2.73 2.70
Fees & Points 0.4 0.5 0.5 0.4 0.5 0.4
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 4.60   3.78   3.41   3.11   3.79   3.04   2.83   2.78  
Fees & Points 0.7   0.7   0.5   0.5   0.7   0.7   0.6   0.5  
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