Little Change for Mortgage Interest Rates

Home interest rate
Mortgage interest rates showed little change and remained near record lows according to Freddie Mac’s recent survey results.

Freddie Mac, a provider of stability and liquidity for the United States’ residential mortgage markets, conducts surveys weekly to assess four types of mortgage interest rates.

The 30-year fixed-rate mortgage (FRM) averaged 3.34 percent with an average 0.7 point for the week ending Dec. 6, 2012. The rate is up from last week when it averaged 3.32 percent. At this time last year, the 30-year FRM averaged 3.99 percent.

If a borrower took out a $200,000 home loan at today’s mortgage interest rate of 3.34 percent, his or her monthly payment would be $880.32. After 30 years, he or she would pay $316,915.20. If the same borrower took the same home loan out one year ago when mortgage interest rates were 3.99 percent, they would pay $953.68 monthly, for a total amount of $343,324.80 after 30 years. Using the current mortgage interest rate, rather than last year’s rate, the borrower would save $26,409.60. 

The 15-year fixed-rate home loan averaged 2.67 percent with an average 0.6 point, up from last week’s average of 2.64 percent. A year ago, the 15-year fixed mortgage interest rate averaged 3.27 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.69 percent with an average of 0.6 point this week. It is down from last week when it averaged 2.72 percent. Last year at this time, the 5-year ARM averaged 2.93 percent.

The 1-year Treasury-indexed ARM averaged 2.55 percent with an average 0.4 point, down from last week’s average of 2.56 percent.  A year ago, the 1-year adjustable-rate mortgage averaged 2.80 percent.

“Mortgage rates were little changed and near record lows this week amid indicators of stronger economic growth and signs of tame inflation,” Frank Nothaft, Freddie Mac vice president and chief economist, said in a release.

The lows kept homebuyer affordability high and more appealing to borrowers open to refinance.

“Both new and existing home sales are up on a yearly basis…but refinancing has accounted for the lion’s share of originations this year as borrowers take advantage of these record lows,” Nothaft said to

Freddie Mac told that although home loan rates change daily, they have changed very little in the national survey because “markets wait to see what happens around the fiscal cliff.”

“We expect long term mortgage rates to stay near their record lows heading into the New Year with the Federal Reserve’s third round of quantitative easing in effect,” Nothaft said.