Mortgage Rates Fall in Record Level

admin — Fri, 19 Dec 2008 08:39:42 +0000

According to Freddie Mac’s Primary Mortgage Market survey, thirty-year fixed-rate mortgage interest rates fell to the lowest level on record in the UK. The report released on last Thursday. Previously the national average interest rate for 30-year fixed-rate mortgages was 5.19% for the week ending 18 December and it was the lowest level since McLean, Va.-based Freddie Mac (NYSE: FRE) began the survey in the year of 1971. Rates crush from previous week when it averaged 5.47% whereas one year ago, the mortgages averaged just 6.14 percent. On the other hand, the 15-year fixed-rate mortgage averaged 4.92%, drop from 5.2% most recent week whilst 5.79% one year ago though the 15-year rates have not been lower level since 1, April, 2004, when those averaged 4.84%.

In a statement, Frank Nothaft, Freddie Mac vice president and chief economist, said “The decline (in 30-year fixed-rate mortgages) was supported by the Federal Reserve announcement on Dec. 16, when it cut the federal funds target to a record low and stated it stood ready to expand its purchases of mortgage-related assets as conditions warrant.”

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.6% in the running week, decline from last week when it averaged just 5.82% and one year ago, the 5-year ARM averaged about 5.9%. One-year Treasury-indexed ARMs averaged 4.94% this week, decline from last week when it averaged 5.09%. The same time previous year, the 1-year ARM averaged 5.51%.

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Mortgage Rates Fall in Record Level