Good news to share! Fixed-rate mortgages set new all-time lows for the second consecutive week, Freddie Mac reports in its weekly mortgage market survey.
“Fixed mortgage rates fell again this week to all-time record lows due to the mortgage securities purchases by the Federal Reserve and indicators of a weakening economy,” says Frank Nothaft, Freddie Mac’s chief economist.
The Federal Reserve’s move recently to buy up $40 billion of mortgage-backed securities each month until the job market improves is causing mortgage rates to fall.
Freddie Mac reports the following national averages with mortgage rates for the week ending Oct. 4:
•30-year fixed-rate mortgages: averaged a new record of 3.36 percent, with an average 0.6 point, dropping from last week’s previous record of 3.40 percent. A year ago, 30-year mortgages averaged 3.94 percent.
•15-year fixed-rate mortgages: averaged a new record low of 2.69 percent, with an average 0.5 point, dropping from last week’s previous record, 2.73 percent. A year ago, 15-year rates averaged 3.26 percent.
•5-year adjustable-rate mortgages: averaged 2.72 percent, with an average 0.6 point, rising slightly from last week’s 2.71 percent average. Last year at this time, 5-year ARMs averaged 2.96 percent.
•1-year ARMs: averaged 2.57 percent, with an average 0.4 point, dropping from last week’s 2.60 percent average. A year ago, 1-year ARMs averaged 2.95 percent.
Source: Freddie Mac