The interest rate on 15-year fixed-rate mortgages (FRM) set another record low this week, according to information released this morning by Freddie Mac.

The Primary Mortgage Market Survey for the week ended November 19 showed rates down across the board, with the 15 year FRM averaging 4.32 percent, the lowest rate since Freddie Mac began tracking the mortgage in 1991.  Last week the 15-year averaged 4.36 percent.  Fees and points were unchanged at 0.6 point.

The 30-year FRM averaged 4.83 percent with 0.7 point, down from the average of 4.91 percent also with 0.7 point a week earlier.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 4.25 percent, a decrease of 4 basis points.  Fees and points were unchanged at 0.6 point.

One-year Treasury-indexed ARMs had an average rate of 4.35 percent compared to 4.46 percent during the week ended November 12.  Fees and points increased from 0.5 to 0.6 point.

Frank Nothaft, Freddie Mac vice president and chief economist said in a statement released with the survey results, "Interest rate on 30-year fixed-rate mortgage loans fell for the third consecutive week to the lowest since the week ending May 21st, while 15-year fixed rates were the lowest since our records began in 1991.  Low fixed rates throughout the third quarter prompted an estimated $1.1 trillion in refinancing activity, saving homeowners about $10 billion in aggregate monthly payments over the first 12 months of their new loan. Moreover, for the fourth consecutive quarter, more than 95 percent of prime borrowers who originally had an ARM selected a conventional fixed-rate mortgage in the third quarter of this year.

"Meanwhile, new home building showed some weakness in recent months. Residential construction eased 10.6 percent (annualized) between September and October, largely driven by a 33.3 percent decline in new condominium and apartment buildings and represented the slowest pace since records began in 1959. And homebuilder confidence in November remained a relatively low level, according to the National Association of Home Builders." 

Fannie Mae's average yields for the week ended November 13 were also down.  The 30-year FRM dropped from 4.72 percent to 4.56 percent while the 15-year FRM fell below four percent to 3.98.  The previous week the 15-year yield was 4.07 percent.

Government guaranteed FHA and VA loans were also down with an average yield of 5.47 percent compared to 5.52 percent a week earlier.

Only Fannie's one-year ARM showed an increase, inching up to 2.94 percent from 2.93 percent.

All Fannie Mae yields are quoted net of servicing fees.