New Year Begins With New Record-Low Mortgage Rates

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing fixed-rate mortgages (FRMs) continuing to hover near their all-time record lows helping to keep homebuyer affordability high and aiding the ongoing housing recovery. As 2013 began, the 30-year FRM averaged 3.34 percent with an average 0.7 point for the week ending Jan. 3, 2013, down from last week when it averaged 3.35 percent. Last year at this time, the 30-year FRM averaged 3.91 percent. Also this week, the 15-year FRM averaged 2.64 percent with an average 0.7 point, down from last week when it averaged 2.65 percent. A year ago at this time, the 15-year FRM averaged 3.23 percent. "Mortgage rates started the year near record lows which should continue to aid the ongoing housing recovery," said Frank Nothaft, vice president and chief economist for Freddie Mac. "New home sales rose in November to a two-year high and were up 15.3 percent from the previous November. Similarly, pending sales on existing homes increased for the third month in November to the strongest pace since April 2010." The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.71 percent this week with an average 0.6 point, up from last week when it averaged 2.70 percent. A year ago, the five-year ARM averaged 2.86 percent. The one-year Treasury-indexed ARM averaged 2.57 percent this week with an average 0.4 point, up from last week when it averaged 2.56. At this time last year, the one-year ARM averaged 2.80 percent.