Mortgage interest rates dropped near record lows during the week ended March 19 according to information released by Freddie Mac Thursday morning.
The mortgage data is based on results from Freddie's Weekly Mortgage Market Survey and showed that the 30-year fixed-rate mortgage (FRM) averaged 4.98 percent, near the all-time low of 4.96 percent reached on January 15 2009. Last week the 30-year rate was 5.03 percent. Fees and points both weeks averaged 0.7 point.
The 15-year FRM averaged 4.61 percent with 0.7 point compared to the week ended March 12 when the average was 4.64 percent with 0.7 point. This is the lowest interest rate recorded by the 15-year FRM since June 13, 2003 when the average was 4.60 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) were reported to be 1 basis point lower than the previous week, averaging 4.98 percent. Fees and points increased from 0.6 to 0.7 point.
The one-year Treasury-indexed ARMs reached an average of 4.91 percent this week with 0.7 point, up from 4.80 percent with 0.5 point the week before.
"Long-term mortgages followed bond yields lower for the second week as reports of slower industrial production suggested that business spending might ease this year," said Frank Nothaft, Freddie Mac vice president and chief economist. "Output at factories declined for the fourth consecutive month by 1.4 percent in February driven by declines in computers and machinery and experienced the largest 12-month drop since June 1975. In addition, factory capacity utilization slumped to 70.9 percent, matching the lowest rate since records began in January 1967.
"Following the March 18th Federal Reserve monetary policy statement, which announced further spending initiatives on financial assets, long-term bond yields plummeted. Yields on 10-year Treasury bonds fell by about a half percentage point after the announcement, marking the largest one-day decline since October 20, 1987."
On Monday Fannie Mae reported on its weekly yields for the period ended March 13. Fannie Mae's numbers are all quoted on a net basis without servicing fees.
