Fixed-rate mortgages hit new lows
30-year fixed-rate mortgages are averaging record-breaking lows, according to Freddie Mac’s Primary Mortgage Market Survey.
According to the survey, 30-year fixed-rate mortgages averaged 3.49 percent, more than a full percentage point lower than a year ago when it averaged 4.55 percent. Meanwhile, the 15-year fixed-mortgage also set another record at 2.80 percent.
Record low mortgage rates fuel housing demands and lead to a pickup in housing starts, home sales, and even housing prices in many markets, according to the report
“Market concerns over the strength of the economic recovery brought long-term treasury yields to new lows this week allowing fixed mortgage rates to reach record levels,” said Frank Nothaft, vice president and chief economist at Freddie Mac.
Nothaft reported the largest monthly decline since September 2011. “Existing home sales fell to 4.36 million homes (annualized) in June and represented the slowest pace since October 2011,” he added. “Similarly, new home sales fell in June to their lowest level since January of this year.”
Nothaft pointed to recent increases in new home construction and improving homebuilder confidence as signs of an improving housing market.
Findings from the survey include:
- 30-year fixed-rate mortgage (FRM) averaged 3.49 percent with an average 0.7 point for the week ending July 26, 2012, down from last week when it averaged 3.53 percent. Last year at this time, the 30-year FRM averaged 4.55 percent.
- 15-year FRM this week averaged 2.80 percent with an average 0.7 point, down from last week when it averaged 2.83 percent. A year ago at this time, the 15-year FRM averaged 3.66 percent.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.74 percent this week with an average 0.6 point, up from last week when it averaged 2.69 percent. A year ago, the 5-year ARM averaged 3.25 percent.
- 1-year Treasury-indexed ARM averaged 2.71 percent this week with an average 0.5 point, up from last week when it averaged 2.69 percent. At this time last year, the 1-year ARM averaged 2.95 percent.
Full details of the survey results can be found on the Freddie Mac website.
Topics
Share this post
Member Discussion
Recent Articles
-
Earn Your Divorce Specialist Certification at Triple Play
- November 14, 2024
- 2 min. read
“Don’t wait until the middle of a transaction to realize there are things you need to know to serve your customers better,” says Realtor® and Triple Play speaker Addie Owens.
-
Unaffordable Market Shrinks First-Time Buyers; Agents Remain Key
- November 13, 2024
- 4 min. read
“We have an all-time high of all cash buyers and an all-time low of first-time homebuyers,” noted NAR Deputy Chief Economist and Vice President of Research Dr. Jessica Lautz.
-
Recent Homebuyers Saved for Five Years on Average
- November 12, 2024
- 2 min. read
On average, recent buyers who were surveyed put down an average of 17.38% on their new home. However, 49% put down 10% or less of the purchase price.
Daily Emails
You’ll be the first to know about real estate trends and various legal happenings. Stay up-to-date by subscribing to JustListed.