Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 4.87 percent with an average 0.7 point for the week ending Oct. 8, 2009, down from last week when it averaged 4.94 percent. Last year at this time, the 30-year FRM averaged 5.94 percent. The last time the 30-year FRM was lower was the week ending May 21, 2009, when it averaged 4.82 percent.
The 15-year FRM this week averaged 4.33 percent with an average 0.7 point, down from last week when it averaged 4.36 percent. A year ago at this time, the 15-year FRM averaged 5.63 percent. This is the lowest the 15-year FRM has been since Freddie Mac started tracking it in 1991.
The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.35 percent this week, with an average 0.5 point, downfrom last week when it averaged 4.42 percent. A year ago, the 5-year ARM averaged 5.90 percent. The five-year ARM has not been lower since Freddie Mac started tracking it in 2005.
The one-year Treasury-indexed ARM averaged 4.53 percent this week with an average 0.5 point, upfrom last week when it averaged 4.49 percent. At this time last year, the 1-year ARM averaged 5.15 percent. Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.
“Long-term mortgage rates eased further this week,” said Frank Nothaft, Freddie Mac vice president and chief economist. “Interest rates for 30-year fixed-rate loans were the lowest since mid-May; 15-year FRMs were at a record low since data were first collected in 1991 and 5-year ARMs also hit an all-time record starting in 2005. Compared to a year ago, consumers could shave almost $134 off their monthly mortgage payments on a 30-year fixed-rate loan for $200,000 by refinancing.
“Such low rates are spurring mortgage demand. Mortgage applications surged to a 19-week high over the week ending on Oct. 2, according to the Mortgage Bankers Association. Moreover, applications for home purchases were at the strongest pace since the beginning of this year.”
For more information, visit FreddieMac.com.