Thirty-Year Fixed Rates Hit All-Time Low of 3.40 Percent

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing fixed mortgage rates breaking their previous average record lows as the 30-year fixed-rate mortgage (FRM) averaged 3.40 percent with an average 0.6 point for the week ending Sept. 27, 2012, down from last week when it averaged 3.49 percent. Last year at this time, the 30-year FRM averaged 4.01 percent.  Also this week, the 15-year FRM this week averaged 2.73 percent with an average 0.6 point, down from last week when it averaged 2.77 percent. A year ago at this time, the 15-year FRM averaged 3.28 percent.  "Fixed mortgage rates continued to decline this week, largely due to the Federal Reserve's purchases of mortgage securities, and should support an already improving housing market," said Frank Nothaft, vice president and chief economist of Freddie Mac. "For instance, the S&P/Case-Shiller 20-city home price index rose 1.2 percent over the 12 months ending in July, reflecting the largest annual increase since August 2010. Moreover, 16 of the cities saw positive growth, led by Phoenix's 16.6 percent gain. Additionally, new home sales in July and August had the strongest two-month pace since March and April 2010." The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.71 percent this week with an average 0.6 point, down from last week when it averaged 2.76 percent. A year ago, the five-year ARM averaged 3.02 percent. The one-year Treasury-indexed ARM averaged 2.60 percent this week with an average 0.4 point, down from last week when it averaged 2.61 percent. last week. At this time last year, the one-year ARM averaged 2.83 percent.