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 2nd, according to the Mortgage
Bankers Association. Moreover, applications for home purchases were at
the strongest pace since the beginning of this year."