Freddie Mac: Fixed-Rate Averages Hit Record-Low Numbers
05/03/2012 By: Esther Cho
Homebuyer affordability is even greater now with the fixed
mortgage rates slipping to new record lows, according to Freddie Mac’s Primary Mortgage Market Survey.
The 30-year fixed averaged 3.84 percent (0.8 point) for the week ending May 3, down from the previous record low of 3.87 percent on February 9, 2012. Last week, the 30-year fixed-rate was 3.88 percent, and last year at this time, it averaged 4.71 percent.
The 15-year fixed mortgage averaged 3.07 percent (0.7 point), also below its all-time record low when it was 3.11 percent April 12 of this year. Last week, the 15-year averaged 3.12 percent, and a year ago, it was 3.89 percent.
The 5-year ARM was unchanged from last week’s average of 2.85 percent (0.7 point). A year ago, the 5-year ARM was 3.47 percent.
The 30-year fixed averaged 3.84 percent (0.8 point) for the week ending May 3, down from the previous record low of 3.87 percent on February 9, 2012. Last week, the 30-year fixed-rate was 3.88 percent, and last year at this time, it averaged 4.71 percent.
The 15-year fixed mortgage averaged 3.07 percent (0.7 point), also below its all-time record low when it was 3.11 percent April 12 of this year. Last week, the 15-year averaged 3.12 percent, and a year ago, it was 3.89 percent.
The 5-year ARM was unchanged from last week’s average of 2.85 percent (0.7 point). A year ago, the 5-year ARM was 3.47 percent.
The 1-year ARM also reached a new record low at 2.70 percent (0.6 point). Last week, the 1-year ARM was 2.74 percent and averaged 3.14 percent a year ago.
“Signs of slowing economic growth and inflation remaining subdued allowed yields on Treasury bonds to ease somewhat and brought most mortgage rates to new all-time record lows this week,” said Frank Nothaft, VP and chief economist for Freddie Mac.
One sign of a slowing economy Nothaft mentioned was real Gross Domestic Product, in which he explained rose at an annualized rate of 2.2 percent in the first quarter of this year, a drop from the previous quarter of 3 percent and below the market consensus forecast of 2.5 percent.
Bankrate.com’s weekly national survey aligned with trends seen in Freddie’s survey by also reporting declines and record low numbers.
The 30-year fixed mortgage slipped to 4.05 percent, a drop from last week’s 4.09 percent.
The 15-year fell to 3.25 percent, a record low and decline compared to last week’s average of 3.28 percent.
Adjustable mortgage rates were mixed, with the average 3-year ARM moving upward to 3.07 percent, while the 5-year ARM tied with February’s record low of 3.02 percent.
Bankrate’s survey includes data provided by the top 10 banks and thrifts in the top 10 markets.
“Signs of slowing economic growth and inflation remaining subdued allowed yields on Treasury bonds to ease somewhat and brought most mortgage rates to new all-time record lows this week,” said Frank Nothaft, VP and chief economist for Freddie Mac.
One sign of a slowing economy Nothaft mentioned was real Gross Domestic Product, in which he explained rose at an annualized rate of 2.2 percent in the first quarter of this year, a drop from the previous quarter of 3 percent and below the market consensus forecast of 2.5 percent.
Bankrate.com’s weekly national survey aligned with trends seen in Freddie’s survey by also reporting declines and record low numbers.
The 30-year fixed mortgage slipped to 4.05 percent, a drop from last week’s 4.09 percent.
The 15-year fell to 3.25 percent, a record low and decline compared to last week’s average of 3.28 percent.
Adjustable mortgage rates were mixed, with the average 3-year ARM moving upward to 3.07 percent, while the 5-year ARM tied with February’s record low of 3.02 percent.
Bankrate’s survey includes data provided by the top 10 banks and thrifts in the top 10 markets.
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