Mortgage rates slipped marginally lower for the third straight week, according to the latest survey from mortgage financier Freddie Mac.
The en vogue 30-year fixed dipped to 5.04 percent from 5.07 percent during the week ending September 17, and remains well below the 5.78 percent average seen a year ago.
The 15-year fixed averaged 4.47 percent, down from 4.50 percent a week ago and 5.35 percent last year.
“Interest rates for fixed-rate mortgages eased for the third consecutive week and remained at 3-month lows,” said Frank Nothaft, Freddie Mac vice president and chief economist, in a statement
“Interest rates for 30-year fixed-rate mortgages have averaged just above 5 percent through mid-September, which is roughly a percentage point below last year’s average and suggests that 2009 may reach a record annual low since the survey began in 1971.
The five-year adjustable-rate mortgage averaged 4.51 percent this week, unchanged from a week ago but much better than the 5.67 percent seen a year ago.
The one-year ARM fell six basis points to 4.58 percent, and sits about a half-point below the 5.03 percent average seen a year earlier.
Nothaft noted that the low rates have spurred new construction, with housing starts up over the past five months ending in July, though they did ease last month.
That means the Feds will likely continue to purchase mortgage securities through 2010 to keep rates at all-time lows, as it seems to be aiding in a recovery.
The above rates are good for conforming loan amounts with a 20 percent down payment; jumbo loans continue to price a point or more higher.
Related Topics:
