Fifteen-Year Mortgage Rates Inch Toward the Three Percent Mark

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing fixed-rate mortgages (FRMs) on a 15-year fixed rate mortgage averaging a new all-time record low of 3.13 percent. A year ago at this time, the 15-year FRM averaged 4.15 percent. The 30-year FRM averaged 3.88 percent for the week, with an average 0.8 point, down from last week when it averaged 3.90 percent. Last year at this time, the 30-year FRM averaged 4.88 percent. "With these historically low rates and declining house prices, the typical family had more than double the income needed to purchase a median-priced home in January, according to the National Association of Realtors Housing Affordability Index which registered the highest reading since records began in 1970," said Frank Nothaft, vice president and chief economist for Freddie Mac. "In fact, the Corelogic National Home Price Index fell for the sixth consecutive month in January to the lowest level since January 2003. This high level of affordability likely contributed to the recent two-week rise ending March 2nd in mortgage applications for home purchases." The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.81 percent this week, with an average 0.7 point, down from last week when it averaged 2.83 percent. A year ago, the five-year ARM averaged 3.73 percent. The one-year Treasury-indexed ARM averaged 2.73 percent this week with an average 0.6 point, up from last week when it averaged 2.72 percent. At this time last year, the one-year ARM averaged 3.21 percent.