Freddie Mac Reports Record Low 30-Year Mortgages

Today, Freddie Mac reports that 30-year fixed-rate mortgages are at record lows not seen since at least 1970, when the organization first started recording a regular Primary Mortgage Market Survey. This week's rates--which now average 4.78 percent and an average 0.7 point--match the record lows set earlier this month during the week ending April 2.


Last week, 30-year fixed-rate mortgages were at a 4.8 average. During this same week last year, they averaged 6.06 percent.


Meanwhile, 15-year fixed-rate mortages averaged 4.48 percent with an average 0.7 point this week. This is the third week in a row with unchanged 15-year rates. This week last year, 15-year fixed-rate mortgages averaged 5.59 percent.


Additionally, five-year Treasury-indexed adjustable-rate mortgages (ARMs) are the lowest since Freddie Mac started tracking them in 2005. This week, they averaged 4.8 percent with an average 0.6 percent, which is a decrease over last week's 4.85 percent average. Last year at this time, these five-year ARMs averaged 5.73 percent.


One-year Treasury-indexed ARMs were at a 4.77 percent average with an average 0.7 point. They are down over last week, when they were averaging 4.82 percent, and are down from a year ago, when they averaged 5.29 percent.


According to Freddie Mac, the housing market may be edging towards a botoom. With current 30-year rates, those who have a $200,000 loan will now have a savings of more than $2,500 a year compared to the peak rates at the end of October. In total, borrowers who refinanced during the first quarter reduced their mortgage payments by $2.5 billion.



- Jill Kipnis, Move Trends Editor
Email: Jill Kipnis@Move.com