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Mortgage Rates End Year Near Historic Lows

Posted by: TP Newswire    Tags:  , , , , , , , , , , , ,     Posted date:  January 9, 2012  |  No comment



Freddie Mac recently released the results of its Primary Mortgage Market Survey, showing average fixed mortgage rates finishing the year near their all-time historic lows helping to keep homebuyer affordability high. Averaging 3.95%, the 30-year fixed has been at or below 4.00% for the past nine consecutive weeks and only twice in 2011 did it average above 5.00%.

News Facts

  • 30-year fixed-rate mortgage (FRM) averaged 3.95% with an average 0.7 point for the week ending December 29, 2011, up from last week when it averaged 3.91%. Last year at this time, the 30-year FRM averaged 4.86%.
  • 15-year FRM this week averaged 3.24% with an average 0.8 point, up from last week when it averaged 3.21%. A year ago at this time, the 15-year FRM averaged 4.20%.
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.88% this week, with an average 0.6 point, up from last week when it averaged 2.85%. A year ago, the 5-year ARM averaged 3.77%.
  • 1-year Treasury-indexed ARM averaged 2.78% this week with an average 0.6 point, up from last week when it averaged 2.77%. At this time last year, the 1-year ARM averaged 3.26%.

Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following links for Regional and National Mortgage Rate Details and Definitions. Borrowers may still pay closing costs which are not included in the survey.

Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac.

  • “Mortgage rates ended the year hovering near historic lows in an already affordable housing market. For instance, the seasonally-adjusted S&P/Case-Shiller 20-City Composite home price index in October was the lowest seen since March 2003. The largest hit areas were Las Vegas with the lowest reading since January 1997 and Atlanta which was since June 1998.

    It’s not surprising then that over 5% of households in December plan to purchase a home over the next six months, the highest share since May, according to The Conference Board.”


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