Mortgage Rates Reach 'New' Record Lows This Week
According to Freddie Mac's (OTC: FMCC) latest Primary Mortgage Market Survey
(PMMS), the 30-year fixed-rate mortgages reached news record lows this week. This week's rate is the lowest since they began recording rates in 1971.
Frank Nothaft, vice president and chief economist of Freddie Mac commented, "For the sixth week in a row, interest rates on fixed-rate mortgages eased to all-time record lows during a week of mixed housing data reports. The number of local markets experiencing annual increases in home prices appears to be growing. For instance, 13 metropolitan areas in the S&P/Case-Shiller 20-city index experienced price appreciation over the 12-months ending in May, compared to 11 in April and 10 in March.
The 30-year fixed-rate mortgage (FRM) averaged 4.54 percent with an average 0.7 point for the week ending July 29, 2010, down from last week when it averaged 4.56 percent. Last year at this time, the 30-year FRM averaged 5.25 percent.
The 15-year FRM this week averaged a record low of 4.00 percent with an average 0.7 point, down from last week when it averaged 4.03 percent. A year ago at this time, the 15-year FRM averaged 4.69 percent.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.76 percent this week, with an average 0.7 point, down from last week when it averaged 3.79 percent. A year ago, the 5-year ARM averaged 4.75 percent.
Finally 1-year Treasury-indexed ARM averaged 3.64 percent this week with an average 0.7 point, down from last week when it averaged 3.70 percent. At this time last year, the 1-year ARM averaged 4.80 percent.
Nothaft further commented, "However, existing home sales in June slowed to an annualized pace of 4.37 million units, the fewest since March. Moreover, although new home sales jumped by almost 24 percent to 330,000 dwellings, it represented the second slowest rate since 1963."
Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.
Freddie Mac defines its regions as follows:Northeast:
NY, NJ, PA, DE, MD, DC, VA, WV, ME, NH, VT, MA, RI, CTSoutheast:
NC, SC, TN, KY, GA, AL, FL, MS, PR, VINorth Central:
OH, IN, IL, MI, WI, MN, IA, ND, SDSouthwest:
TX, LA, NM, OK, AR, MO, KS, CO, NE, WYWest:
CA, AZ, NV, OR, WA, UT, ID, MT, HI, AK, GU