Average Annual Mortgage Rate Hits Lowest Point in 65 Years

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing the average fixed mortgage rates finishing the year near record lows, helping to keep homebuyer affordability high as the 30-year fixed-rate mortgage (FRM) averaged 3.35 percent with an average 0.7 point for the week ending Dec. 27, 2012, down from last week when it averaged 3.37 percent. Last year at this time, the 30-year FRM averaged 3.95 percent. For the entire 2012 calendar year, the 30-year FRM averaged 3.66 percent, the lowest annual average in at least 65 years. Also this week, the 15-year FRM averaged 2.65 percent with an average 0.7 point, unchanged from last week when it averaged 2.65 percent. A year ago at this time, the 15-year FRM averaged 3.24 percent. "Mortgage rates ended this year near record lows," said Frank Nothaft, vice president and chief economist, Freddie Mac. "Rates on 30-year fixed mortgages were nearly 0.6 percentage points below that of the beginning of the year, which translates into an interest payment savings of nearly $98,600 over the life of a $200,000 loan. Moreover, opting for a 15-year fixed mortgage at today's rates, a homeowner could save an additional $138,400 in interest payments." The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.70 percent this week with an average 0.7 point, down from last week when it averaged 2.71 percent. A year ago, the five-year ARM averaged 2.88 percent. The one-year Treasury-indexed ARM averaged 2.56 percent this week with an average 0.5 point, up from last week when it averaged 2.52. At this time last year, the one-year ARM averaged 2.78 percent.