Fixed-Rate Mortgages Dip Back to Record Low of 3.49 Percent

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing fixed mortgage rates at or near their all-time record lows helping to keep homebuyer affordability high, as the 30-year fixed-rate mortgage (FRM) averaged 3.49 percent with an average 0.6 point for the week ending Sept. 20, 2012, down from last week when it averaged 3.55 percent. Last year at this time, the 30-year FRM averaged 4.09 percent. The 15-year FRM this week averaged 2.77 percent with an average 0.6 point, down from last week when it averaged 2.85 percent. A year ago at this time, the 15-year FRM averaged 3.29 percent. "Following the Federal Reserve's announcement of a new bond purchase plan, yields on mortgage-backed securities fell bringing average fixed mortgage rates to their all-time record lows which should aid in the ongoing housing recovery," said Frank Nothaft, vice president and chief economist of Freddie Mac. "New construction on one-family homes rebounded in August, rising by 5.5 percent to the fastest pace since April 2010. In addition, existing home sales increased by 7.8 percent in August to its strongest pace since May 2010." The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.76 percent this week with an average 0.6 point, up from last week when it averaged 2.72 percent. A year ago, the five-year ARM averaged 3.02 percent. The one-year Treasury-indexed ARM averaged 2.61 percent this week with an average 0.4 point, the same as last week. At this time last year, the one-year ARM averaged 2.82 percent.