Mortgage Interest Rates Drop to Record Lows

Housing rates decrease
Fixed mortgage interest rates dipped to new record lows according to Freddie Mac survey results released today.

The 30-year fixed-rate mortgage (FRM) averaged 3.34 percent with an average 0.7 point for the week ending on Nov. 15, 2012. The average was down from last week’s of 3.40 percent. At this time last year, the fixed mortgage interest rates averaged 4.00 percent.

The 15-year fixed-rate mortgage averaged 2.65 percent with an average of 0.7 point, down from last week’s average of 2.69 percent. At this time last year, the 15-year FRM averaged 3.31 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.74 percent with an average of 0.6 point this week, an increase from last week’s 2.73 percent average. A year ago, the ARM averaged 2.97 percent.

The 1-year Treasury-indexed ARM averaged 2.55 percent with an average of 0.3 point, a decline from last week when it averaged 2.59 percent. A year ago, the 1-year adjustable-rate mortgage averaged 2.98 percent.

Frank Nothaft, vice president and chief economist of Freddie Mac, said the record lows occurred even in the midst of higher consumer confidence and low wholesale prices.

“Consumer sentiment rose in November to the highest reading since July 2007 according to the University of Michigan. Meanwhile the core producer price index fell 0.2 percent in October,” Nothaft said in a press release.

The record low for the 30-year fixed mortgage interest rate was previously set the week of Oct. 4 when it averaged 3.36 percent. The 15-year fixed record low was set the week of Oct. 18 when it averaged 2.66 percent.

Freddie Mac, a provider of liquidity and stability for the United States’ residential mortgage markets, conducts surveys each week to assess four types of mortgage interest rates. Freddie Mac’s Primary Mortgage Market Survey (PMMS) does not include closing costs, which are still required for borrowers.