Record Low Mortgage Rates
Mortgage rates hit a new record low this week, according to mortgage financier Freddie Mac.
The uber-popular 30-year fixed-rate mortgage averaged 4.71 percent during the week ending December 3, down from 4.78 percent a week earlier and 5.53 percent a year ago.
It’s now at its lowest point since Freddie Mac began tracking back in 1971.
The 15-year fixed fell two basis points to 4.27 percent, well below the 5.77 percent average seen a year ago, and also a new record low that goes all the way back to 1991.
“Interest rates for 30-year and 15-year fixed-rate mortgages fell for the fifth consecutive week to an all-time record low while the average rate on 5-year ARMs hovered near its record set in the previous week,” said Frank Nothaft, Freddie Mac vice president and chief economist, in a statement.
“In addition, interest rates on 30-year and 15-year fixed mortgages thus far in 2009 averaged one percentage point below their respective average in 2008.”
Adjustable-rate mortgages were a mixed bag; the five-year ARM increased a single-basis point to 4.19 percent, while the one-year ARM slipped 10 bps to 4.25 percent, its lowest point since June 2005.
A year ago, the five-year was pricing at 5.77 percent and the one-year stood at 5.02 percent.
The interest rates above are good for conforming loan amounts at 80 percent loan-to-value at par; pricing adjustments may increase or decrease the rate you actually receive.
Jumbo loans continue to price a percentage point or more higher than conforming mortgages.
So what do you think, can mortgage rates go any lower, or have we reached bottom?
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