Long-Term Mortgage Rates in U.S. Averaging 3.9%, Still Near 60-Year Lows

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According to Freddie Mac's latest Primary Mortgage Market Survey (PMMS), fixed mortgage rates in the U.S. moved slightly lower for the week and remaining near their 60-year lows helping to keep homebuyer affordability high.

Freddie Mac's chief economist Frank Nothaft tells World Property Channel, "Fixed mortgage rates bottomed out in January and February of this year which is helping spur the housing market. For instance, pending existing home sales rose in January to its strongest pace since April 2010 and sales figures for December saw upward revisions. In addition, the Federal Reserve noted in its February 29th regional economic review (or Beige Book) that residential real estate activity increased modestly in most of its Districts over the course of January and early February, with several reports of increased home sales."

The 30-year fixed-rate mortgage (FRM) averaged 3.90 percent with an average 0.8 point for the week ending March 1, 2012, down from last week when it also averaged 3.95 percent. Last year at this time, the 30-year FRM averaged 4.87 percent.

15-year FRM this week averaged 3.17 percent with an average 0.8 point, down from last week when it averaged 3.19 percent. A year ago at this time, the 15-year FRM averaged 4.15 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.83 percent this week, with an average 0.7 point, up from last week when it averaged 2.80 percent. A year ago, the 5-year ARM averaged 3.72 percent.

1-year Treasury-indexed ARM averaged 2.72 percent this week with an average 0.6 point, down from last week when it averaged 2.73 percent. At this time last year, the 1-year ARM averaged 3.23 percent.