The 30-year fixed-rate mortgage averaged 4.49 percent for the week ending Aug. 5, down from a previous low of 4.54 percent. The 15-year FRM and five-year adjustable-rate products also fell to new lows.
Freddie Mac released the results of its Primary Mortgage Market Survey, with the 30-year and 15-year fixed-rate mortgages reaching record lows for the survey. The five-year adjustable rate mortgage also reached its lowest level since Freddie Mac began tracking it in 2005.
The 30-year fixed-rate mortgage (FRM) averaged 4.49 percent with an average 0.7 point for the week ending Aug. 5, down from the prior week when it averaged 4.54 percent. Last year at this time, the 30-year FRM averaged 5.22 percent.
The 15-year FRM averaged a record low of 3.95 percent with an average 0.6 point, down from the prior week when it averaged 4 percent. A year ago at this time, the 15-year FRM averaged 4.63 percent.
The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.63 percent for the week, with an average 0.6 point, down from the previous week when it averaged 3.76 percent. A year ago, the five-year ARM averaged 4.73 percent.
The one-year Treasury-indexed ARM averaged 3.55 percent for the week with an average 0.7 point, down from the prior week when it averaged 3.64 percent. At this time last year, the one-year ARM averaged 4.78 percent.
“And yet again, interest rates for fixed-rate mortgages and now the hybrid five-year ARM fell to all-time record lows this week, following the second quarter GDP release. Annual revisions cut the cumulative GDP growth in half over the past three years ending in the first quarter of 2010 from 1.4 percent to 0.6 percent. This reduces inflationary pressures and allows longer-term rates room to ease,” said Frank Nothaft, vice president and chief economist at Freddie Mac.
“More recently, housing investment picked up in the second quarter of this year as the homebuyer tax credit spurred new and existing sales and low mortgage rates encouraged remodeling. Fixed residential investment added 0.6 percentage points to second quarter real GDP growth following two quarters of decline,” he added.
Story from The Title Report