U.S. Long-Term Mortgage Rates End 2012 at Near Historic Lows

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According to Freddie Mac's latest Primary Mortgage Market Survey (PMMS), the average fixed mortgage rate in the U.S. finishes the year near record lows, helping to keep homebuyer affordability index high. The 30-year fixed eased slightly this week to average 3.35 percent, while the 15-year fixed remained unchanged at 2.65 percent.
 
Frank Nothaft, vice president and chief economist of Freddie Mac says, "Mortgage rates ended this year near record lows. The 30-year fixed-rate mortgage averaged 3.66 percent for 2012, the lowest annual average in at least 65 years. Rates on 30-year fixed mortgages were nearly 0.6 percentage points below that of the beginning of the year, which translates into an interest payment savings of nearly $98,600 over the life of a $200,000 loan. Moreover, opting for a 15-year fixed mortgage at today's rates, a homeowner could save an additional $138,400 in interest payments."
 
The 30-year fixed-rate mortgage (FRM) averaged 3.35 percent with an average 0.7 point for the week ending December 27, 2012, down from last week when it averaged 3.37 percent. Last year at this time, the 30-year FRM averaged 3.95 percent.

15-year FRM this week averaged 2.65 percent with an average 0.7 point, unchanged from last week when it averaged 2.65 percent. A year ago at this time, the 15-year FRM averaged 3.24 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.70 percent this week with an average 0.7 point, down from last week when it averaged 2.71 percent. A year ago, the 5-year ARM averaged 2.88 percent.

1-year Treasury-indexed ARM averaged 2.56 percent this week with an average 0.5 point, up from last week when it averaged 2.52. At this time last year, the 1-year ARM averaged 2.78 percent.