Thirty-Year Mortgage Rates Hit New Low of 3.94 Percent

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing average fixed mortgage rates at or near their all-time lows. as the 30-year fixed rate mortgage (FRM) matched the average all-time record low of 3.94 percent, with an average 0.8 point for the week ending Dec. 15, 2011, down from last week when it averaged 3.99 percent. Last year at this time, the 30-year FRM averaged 4.83 percent.  Also this week, a new all-time record low was set for the 15-year FRM, as it averaged 3.21 percent with an average 0.8 point, down from last week when it averaged 3.27 percent. A year ago at this time, the 15-year FRM averaged 4.17 percent. "Mortgage rates were at or near all-time record lows this week amid a rough environment for housing," said Frank Nothaft, vice president and chief economist for Freddie Mac. "In its Dec. 13th monetary policy announcement, the Federal Reserve reiterated the housing market remains depressed. Over the first nine months of 2012, households lost almost $400 billion in property values which contributed to a $1.4 trillion reduction in overall net worth. In addition, serious delinquency rates (90 or more days delinquent plus foreclosures) on mortgages increased slightly between June 30 and Sept. 30 of the year, breaking a six-quarter consecutive decline, according to the Mortgage Bankers Association." The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) also hit a record low this week, averaging 2.86 percent this week, with an average 0.6 point, down from last week when it averaged 2.93 percent. A year ago, the five-year ARM averaged 3.77 percent. The one-year Treasury-indexed ARM averaged 2.81 percent this week with an average 0.6 point, up from last week when it averaged 2.80 percent. At this time last year, the one-year ARM averaged 3.35 percent.