Mortgage rates just keep going down according to data released this week by both Fannie Mae and Freddie Mac.

Freddie Mac's Primary Mortgage Market Survey for the week ended October 8 showed an average rate for the 30-year fixed-rate mortgage (FRM) of 4.87 percent with 0.7 point.  During the previous week the average was 4.94 percent also with 0.7 point.  This is the lowest the 30-year rate has been since the week ended May 21 when it averaged 4.82 percent.

The 15-year FRM set yet another record this week with a rate that averaged 4.33 percent with 0.7 point.  Last week the average was 4.36 percent with 0.6 point.  This is the fourth consecutive week that the 15-year has reached new lows for the 15 years Freddie Mac has tracked the mortgage.

The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) also set a new record low at 4.35 percent with 0.5 point, down from 4.42 percent with 0.6 point.  Freddie Mac first started reporting on weekly averages for the hybrid in January, 2005.

One-year Treasury-indexed ARMs averaged 4.53 percent, an increase from last week when it averaged 4.49 percent.  Fees and points were unchanged at 0.5 point.

Fannie Mae's weekly yields for the week ended October 2 also showed significant decreases for fixed rate mortgages.  The 30 year FRM was down 21 basis points to an average of 4.49 percent.  The 15-year FRM which was at 4.07 during the week ended September 25 dropped to 4.01 during the most recent period.  Government guaranteed VA/FHA loans, however, saw an increase in the average rate from 5.28 percent to 5.49 percent.

The one-year ARM was also up slightly, from 2.91 percent to 2.93 percent.

All Fannie Mae yields are quoted net of servicing and other fees.

 "Long-term mortgage rates eased further this week," said Frank Nothaft, Freddie Mac vice president and chief economist. "Interest rates for 30-year fixed-rate loans were the lowest since mid-May; 15-year FRMs were at a record low since data were first collected in 1991 and 5-year ARMs also hit an all-time record starting in 2005. Compared to a year ago, consumers could shave almost $134 off their monthly mortgage payments on a 30-year fixed-rate loan for $200,000 by refinancing.

"Such low rates are spurring mortgage demand. Mortgage applications surged to a 19-week high over the week ending on October 2^nd, according to the Mortgage Bankers Association.  Moreover, applications for home purchases were at the strongest pace since the beginning of this year."