Mortgage Rates Set All-time Record Lows, Again

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According to Freddie Mac's (OTC:FMCC) latest Primary Mortgage Market Survey (PMMS), the 30-year fixed-rate mortgage (FRM) and the 15-year (FRM) set new records for all-time lows. The 5-year ARM also reached another new low in the survey while the 1-year ARM remained flat.

Freddie Mac's chief economist Frank Nothaft said, "Following the Federal Reserve (Fed) November 3rd policy announcement that it plans to purchase up to $600 billion in government securities, Treasury bond yields initially fell and then gradually rose again. This allowed mortgage rates to fall to record levels this week."

Fast Facts

• 30-year fixed-rate mortgage (FRM) averaged 4.17 percent with an average 0.8 point for the week ending November 11, 2010, down from last week when it averaged 4.24 percent. Last year at this time, the 30-year FRM averaged 4.91 percent.

• 15-year FRM this week averaged 3.57 percent with an average 0.8 point, down from last week when it averaged 3.63 percent. A year ago at this time, the 15-year FRM averaged 4.36 percent.

• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.25 percent this week, with an average 0.7 point, down from last week when it averaged 3.39 percent. A year ago, the 5-year ARM averaged 4.29 percent.

• 1-year Treasury-indexed ARM averaged 3.26 percent this week with an average 0.7 point, unchanged from last week when it also averaged 3.26 percent. At this time last year, the 1-year ARM averaged 4.46 percent.

Nothaft further commented, "Despite historically low mortgage rates, however, the housing recovery continues to be slow owing in part to household job uncertainty and tight credit conditions. The unemployment rate has remained at 9.5 percent or higher for the past 15 months, while commercial banks tightened lending standards in 16 of the last 17 quarters, according to the Fed's Senior Loan Officer Opinion Survey."



Freddie Mac defines its regions as follows:

Northeast: NY, NJ, PA, DE, MD, DC, VA, WV, ME, NH, VT, MA, RI, CT
Southeast: NC, SC, TN, KY, GA, AL, FL, MS, PR, VI
North Central: OH, IN, IL, MI, WI, MN, IA, ND, SD
Southwest: TX, LA, NM, OK, AR, MO, KS, CO, NE, WY
West: CA, AZ, NV, OR, WA, UT, ID, MT, HI, AK, GU

 

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