Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), which found that the 30-year fixed-rate mortgage (FRM) rate fell again to break the survey’s all time low; the 30-year FRM has been under five percent for 23 weeks in a row. The last time 30-year FRM rates were this low was April 1951 (based on a data series of FHA rates going back to 1948). The five-year ARM tied the all-time survey low set last week.
The 30-year FRM averaged 4.19 percent with an average 0.8 point for the week ending Oct. 14, 2010, down from last week when it averaged 4.27 percent. Last year at this time, the 30-year FRM averaged 4.92 percent. The15-year FRM averaged a record low of 3.62 percent with an average 0.7 point, down from the previous week when it averaged 3.72 percent. A year ago at this time, the 15-year FRM averaged 4.37 percent.
“September’s employment report held no big surprises to financial markets, allowing long term bond yields and fix mortgage rates to continue to ease," said Frank Nothaft, vice president and chief economist, Freddie Mac. "As a result, both the 30-year and 15-year fixed mortgage rates hit all-time record lows for the third consecutive week."
The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.47 percent this week, with an average 0.6 point, tied with last week when it also averaged 3.47 percent. A year ago, the five-year ARM averaged 4.38 percent. The one-year Treasury-indexed ARM averaged 3.43 percent this week with an average 0.8 point, up from last week when it averaged 3.40 percent. At this time last year, the one-year ARM averaged 4.60 percent.
“Historically low rates have spurred yet another refinancing wave. Conventional mortgage applications for refinance jumped 24 percent over the week of Oct. 8 to the strongest pace since mid-April 2009, according to the Mortgage Bankers Association," said Nothaft. "The Bureau of Economic Analysis estimates that homeowners held an average effective mortgage rate of 6.07 percent in the second quarter of 2010. By refinancing into this week’s 30-year fixed-rate mortgage, the average homeowner could save over $230 a month in principal and interest payments on a $200,000 loan balance.”
For more information, visit www.freddiemac.com.
