Mortgage rates break records – again
Both 30-year and 15-year set records
Fixed mortgage rates decreased to new all-time record low levels late last week, Freddie Mac said in its most recent weekly mortgage report.
According to Freddie Mac’s Primary Mortgage Market Survey for the week ending November 15, 2012, rates for both 15-year fixed mortgages and 30-year fixed mortgages dropped to new historical low averages.
“Fixed mortgage rates eased this week to record lows on indicators of higher consumer confidence and lower wholesale prices,” Frank Nothaft, vice president and chief economist at Freddie Mac, said in a statement.
According to Freddie Mac, both higher consumer confidence and lower wholesale prices contributed to the record-setting rate environment.
“Consumer sentiment rose in November to the highest reading since July 2007 according to the University of Michigan,” Nothaft said. “Meanwhile, the core producer price index fell 0.2 percent in October.”
Fixed mortgage rates fall, ARMs mixed
Average rates for 30-year fixed-rate mortgage dropped to the new all-time record low of 3.34 percent, down from the previous week’s 3.40 percent average. This average topped the previous all-time low of 3.36 percent set during the week of October 4.
Shorter-term 15-year fixed mortgages decreased to 2.65 percent from 2.69 percent the previous week. The 2.65 percent average came in slightly below the previous all-time record low of 2.66 percent established the week of October 18.
Meanwhile, 5-year adjustable-rate mortgages (ARMs) increased slightly to an average of 2.74 percent from 2.73 percent the previous week, while 1-year ARMs dropped from an average of 2.59 percent to 2.55 percent week-over-week.
One year ago at this time, 5-year ARMs averaged 2.97 percent and 1-year ARMs averaged 2.98 percent.