Record-Setting Low Fixed Mortgage Rates Persist
Freddie Mac released the results of its Primary Mortgage Market Survey, showing average fixed mortgage rates falling to new all-time record lows for the sixth consecutive week amid weak economic and job data. These latest figures show that home-buyers opportunity for record low interest rates is still high.
30-year fixed-rate mortgage (FRM) averaged 3.67 percent with an average 0.7 point for the week ending June 7, 2012, down from last week when it averaged 3.75 percent. Last year at this time, the 30-year FRM averaged 4.49 percent. For those of you who are old enough, do you remember interest rates at 18% in the 1980s?
15-year FRM this week averaged 2.94 percent with an average 0.7 point, down from last week when it averaged 2.97 percent. A year ago at this time, the 15-year FRM averaged 3.68 percent. Because these rates are so low, there is not much room for them to go down any further.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.84 percent this week, with an average 0.7 point, the same as last week. A year ago, the 5-year ARM averaged 3.28 percent.
1-year Treasury-indexed ARM averaged 2.79 percent this week with an average 0.4 point, up from last week when it averaged 2.75 percent. At this time last year, the 1-year ARM averaged 2.95 percent.
30 Year Fixed: 3.75%
15 Year Fixed: 2.97%
1 Year Adj: 2.75%
(U.S. Weekly Averages)
Frank Nothaft, vice president and chief economist, Freddie Mac:
“Fixed mortgage rates reached new record lows for the sixth consecutive week as long-term Treasury bond yields declined further following downwardly revised economic growth and job creation data. Gross domestic product rose 1.9 percent in the first quarter, after originally being reported as 2.2 percent, led by gains in inventories, more government cutbacks and the slowest increase in corporate profits in over three years. In addition, the economy added 69,000 jobs in May, less than half of the market consensus forecast and revisions subtracted a total of 49,000 workers in March and April. Lastly, the unemployment rate ticked up from 8.1 percent in April to 8.2 percent.”
True, no one is sure how long this will last, but one thing we know for sure, eventually the interest rates will start to rise. If you are in the market to purchase a home, and have good credit, the experts are saying, DO IT NOW!, for good reason.