Thirty-Year Fixed Falls Below Three and a Half Percent

July 27, 2012 (Shirley Allen)

More signs of weakening economic activity pushed Treasury bonds to new all-time lows this week sending mortgage rates down another notch according to Freddie Mac’s Primary Mortgage Market Survey® (PMMS) for the week ending July 26th.

Fixed Rate Mortgages:

Interest rates on fixed rate mortgages declined to new record lows again this week, with the 30-year fixed rate averaging 3.49 percent with an average of 0.7 points, down from 3.53 the previous week. It was the 18th consecutive week that mortgage rates have been under four percent. A year ago, the 30-year fixed rate mortgage averaged 4.55 percent.

The 15-year fixed rate mortgage also set a new record low average of 2.80 percent with an average of 0.7 points, down from last week’s average of 2.83 percent. Mortgage rates for the 15-year fixed mortgage have been under three percent for nine consecutive weeks. At this time last year, the 15-year fixed rate mortgage averaged 3.66 percent.

Adjustable Rate Mortgages:

Interest rates for adjustable-rate mortgages were higher this week with the 5-year Treasury-indexed hybrid ARM averaging 2.74 percent, with an average of 0.6 points, up from last week’s record low average of 2.69 percent. The 5-year adjustable rate mortgage averaged 3.25 percent a year earlier.

The 1-year Treasury-indexed adjustable rate mortgage averaged 2.71 percent with an average of 0.5 points, up from last week’s average of 2.69 percent. A year ago, the 1-year adjustable rate mortgage averaged 2.97 percent.

Frank Nothaft, vice president and chief economist of Freddie Mac, stated, “Market concerns over the strength of the economic recovery brought long-term Treasury yields to new lows this week allowing fixed mortgage rates to reach record levels. The Conference Board Leading Economic Index showed the largest monthly decline in June since September 2011. Existing home sales fell to 4.36 million homes (annualized) in June and represented the slowest pace since October 2011. Similarly, new home sales fell in June to their lowest level since January of this year.”

30-Year Fixed Rate Mortgages US NE SE NC SW W
Average 3.49 3.52 3.53 3.48 3.49 3.47
Fees & Points 0.7 0.7 0.7 0.8 0.7 0.8

15-Year Fixed Rate Mortgages US NE SE NC SW W
Average 2.80 2.81 2.83 2.77 2.82 2.78
Fees & Points 0.7 0.6 0.7 0.6 0.7 0.8

5/1-Year Adjustable Rate Mortgages US NE SE NC SW W
Average 2.74 2.74 2.75 2.83 2.73 2.67
Fees & Points 0.6 0.6 0.6 0.5 0.7 0.7
Margin 2.74 2.72 2.75 2.73 2.77 2.74

1-Year Adjustable Rate Mortgages US NE SE NC SW W
Average 2.71 2.74 2.75 2.64 2.73 2.70
Fees & Points 0.5 0.6 0.5 0.4 0.5 0.4
Margin 2.76 2.79 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 4.55   3.66   3.25   2.95   3.53   2.83   2.69   2.69  
Fees & Points 0.8   0.7   0.6   0.5   0.7   0.6   0.6   0.4  
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