Thirty-Year Fixed Rate Mortgage Hits Record Low 3.89 Percent

January 12, 2012 (Shirley Allen)

Mortgage interest rates fell this week to new all-time record lows for both fixed rate mortgages and adjustable rate mortgages according to Freddie Mac’s Primary Mortgage Market Survey® (PMMS) for the week ending January 12th.

Fixed Rate Mortgages:

Interest rates on fixed rate mortgages set record lows this week with the 30-year fixed rate mortgage averaging 3.89 percent with an average of 0.7 points, down from last week’s average of 3.91 percent. A year ago the 30-year fixed rate mortgage averaged 4.71 percent. The previous record low for the 30-year fixed rate mortgage was 3.91 percent.

It was the also 11th consecutive week that 30-year fixed mortgage rates have been four percent or lower.

The 15-year fixed rate mortgage averaged 3.16 percent with an average of 0.8 points, down from last week’s average of 3.23 percent. At this time last year, the 15-year fixed rate mortgage averaged 4.08 percent. The previous record low for the 15-year fixed rate mortgage was 3.21 percent.

Adjustable Rate Mortgages:

Interest rates for adjustable mortgages also set record lows this week with the 5-year Treasury-indexed hybrid ARM averaging 2.82 percent, down from last week’s average of 2.86 percent, with an average of 0.7 points. The previous record low for the 5-year ARM was 2.85 percent. The 5-year adjustable rate mortgage averaged 3.72 percent a year earlier.

The 1-year Treasury-indexed adjustable rate mortgage decreased this week to an average of 2.76 percent with an average of 0.6 points, up from an average of 2.80 percent the previous week. A year ago, the 1-year adjustable rate mortgage averaged 3.23 percent. The previous record low for the 1-year ARM was 2.77 percent.

Frank Nothaft, vice president and chief economist of Freddie Mac, stated, “Mortgage rates eased slightly this week to all-time record lows following mixed indicators in the labor market. Although the economy added 1.6 million jobs in 2011, which was the most since 2006, the unemployment rate remained historically elevated. The 2009 to 2011 period had the highest three-year average unemployment rate since 1939 to 1941. Moreover, the Federal Reserve indicated in its January 11th regional economic review that most industries saw limited permanent hiring at the end of last year.”

30-Year Fixed Rate Mortgages US NE SE NC SW W
Average 3.89 3.89 3.91 3.87 3.95 3.84
Fees & Points 0.7 0.8 0.8 0.7 0.7 0.8

15-Year Fixed Rate Mortgages US NE SE NC SW W
Average 3.16 3.19 3.15 3.13 3.23 3.11
Fees & Points 0.8 0.8 0.8 0.7 0.8 0.9

5/1-Year Adjustable Rate Mortgages US NE SE NC SW W
Average 2.82 2.88 2.72 2.93 2.89 2.69
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 2.76 2.81 2.63 3.00 2.64 2.66
Fees & Points 0.6 0.8 0.6 0.4 0.6 0.5
Margin 2.76 2.79 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   4.08   3.72   3.23   3.91   3.23   2.86   2.80  
Fees & Points 0.8   0.7   0.7   0.6   0.8   0.8   0.7   0.6  
Margin N/A N/A 2.75   2.77   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