Mortgage rates fell this week to the lowest point since mortgage financier Freddie Mac began its weekly interest rate survey in April 1971.
“Interest rates for 30-year fixed-rate mortgage rates fell for the seventh consecutive week, moving these rates to the lowest since the survey began in April 1971,” said Frank Nothaft, Freddie Mac chief economist.
“The decline was supported by the Federal Reserve announcement on Dec. 16th, 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.”
The average rate on a 30-year fixed-rate mortgage fell to 5.19 percent, down from 5.47 percent a week earlier and 6.14 percent a year ago.
The 15-year fixed slipped below five percent to 4.92 percent, down from 5.20 percent last week and 5.79 percent a year earlier.
Meanwhile, the five-year ARM averaged 5.60 percent, down from 5.82 percent last week and 5.90 percent last year.
The one-year ARM dropped to 4.94 percent, down from 5.09 percent a week ago and 5.51 percent this time last year.
Freddie’s weekly survey uses data from conforming mortgages with a loan-to-value of 80 percent.
Unfortunately, many looking to refinance have nowhere close to 20 percent equity in their homes, making it extremely difficult to take advantage of the historical low rates.
Further, those with jumbo loans are also out of luck, as such loans are pricing around eight percent and higher.
Hopefully someone can take advantage of these historically low rates…
(photo: treehouse1977)
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