Mortgage interest rates are flirting with record low territory again according to the results of Freddie Mac's Primary Mortgage Market Survey.
During the week ended October 1 the 30-year fixed rate mortgage (FRM) averaged 4.94 percent with 0.7 point compared to the week before when the average was 5.04 with 0.6 point. The 30-year fixed was last at this level during the week ended May 28, 2009 when it averaged 4.91 percent.
The 15-year FRM averaged 4.36 percent, ten basis points lower than the week ended September 24. Fees and points were unchanged at an average of 0.6 point. This is yet another new low for the 15-year which Freddie Mac first tracked in 1991.
The five-year Treasury-indexed hybrid adjustable rate mortgage (ARM) had an average rate of 4.42 percent with 0.6 point. Last week the rate was 4.51 percent with 0.5 point. This is the lowest rate reached by the five-year hybrid all year.
One-year Treasury-indexed ARMs also hit a 2009 low with an average rate of 4.49 percent with 0.5 point, down from 4.52 percent also with 0.5 point.
"Low mortgage rates are helping to stabilize home sales," said Frank Nothaft, Freddie Mac vice president and chief economist. "New home sales in August rose to the highest annualized pace since September 2008 and the inventory of unsold houses fell to the lowest level since February 1983.
Although existing home sales fell somewhat in August, it was still the second strongest showing in 23 months. Furthermore, house prices increased for the second month in a row in July, after adjusting for seasonality, based on the 20-city composite S&P/Case-Shiller Home Price Index®. Moreover, the increases were more broad-based in July with house prices rising in 17 of these metropolitan areas, compared to 16 in June.
Yields for Fannie Mae mortgages during the week ended September 25 were released earlier in the week and were mixed. The 30-year conventional FRM had an average yield of 4.70 percent, up from 4.68 a week earlier. The 15-year FRM and government guaranteed loans were both unchanged; the 15-year at 4.07 percent and the FHA/VA mortgages at 5.28 percent. The one year ARM was down slightly from 2.95 to 2.91 percent.
All Fannie Mae yields are reported net of servicing fees.