My Real Estate Blog

October 15th, 2010 6:12 AM
Freddie Mac today released the results of its Primary Mortgage Market Survey showing that the 30-year fixed-rate mortgage rate fell again to break the survey’s all-time low  The 30-year has been under 5% for 23 weeks in a row. The last time 30-year rates were this low was April 1951 (based on a data series of FHA rates going back to 1948). The 5-year ARM tied the all-time survey low set last week.

30-year fixed-rate mortgage averaged 4.19% with an average 0.8 point for the week ending October 14, 2010, down from last week when it averaged 4.27%. Last year at this time, the 30-year FRM averaged 4.92%.

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.47% this week, with an average 0.6 point, tied with last week when it also averaged 3.47%. A year ago, the 5-year averaged 4.38%.

September’s employment report held no big surprises to financial markets, allowing long-term bond yields and fix mortgage rates to continue to ease. As a result, both the 30-year and 15-year fixed mortgage rates hit all-time record lows for the third consecutive week.

Historically low rates have spurred yet another refinancing wave. Conventional mortgage applications for refinance jumped 24% over the week of October 8th to the strongest pace since mid-April 2009, according to the Mortgage Bankers Association . The Bureau of Economic Analysis estimates that homeowners held an average effective mortgage rate of 6.07% in the second quarter of 2010. By refinancing into this week’s 30-year fixed-rate mortgage, the average homeowner could save over $230 a month in principal and interest payments on a $200,000 loan balance.

Posted by Jim McCowan on October 15th, 2010 6:12 AMPost a Comment (0)
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