Record Home Loan Interest Rates for Second Consecutive Week

Home dropped on ground
Fixed home loan interest rates set a new record low for the second consecutive week according to Freddie Mac survey results released today.

The 30-year fixed-rate mortgage (FRM) averaged 3.31 percent with an average 0.7 point for the week ending on Nov. 21, 2012, down from last week’s record average of 3.34 percent. At this time last year, the fixed home loan interest rates averaged 3.98 percent.

The 15-year fixed-rate mortgage averaged 2.63 percent with an average 0.7 point. The rate is down from last week’s average of 2.65 percent. A year ago at this time, the 15-year FRM averaged 3.30 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.74 percent with an average of 0.6 point this week, the same as last week. At this time last year, the 5-year ARM averaged 2.91 percent.

The 1-year Treasury-indexed ARM averaged 2.56 percent with an average 0.5 point, an increase from last week when it averaged 2.55 percent. A year ago, the 1-year adjustable-rate mortgage averaged 2.79 percent.

Frank Nothaft, vice president and chief economist of Freddie Mac, said the low home loan interest rates will continue to support the ongoing housing recovery.

“Already, new construction on homes was up to 3.6 percent in October to the strongest pace since July 2008,” Nothaft said. “In November, homebuilder confidence rose for the sixth straight month to its highest reading since June 2006 according to the NAHB/Wells Fargo Housing Market Index.”

Additionally, home sales increased 2.1 percent in October to an annualized pace of 4.79 million.

Nothaft said the rates exceeded the market consensus forecast.

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