Mortgage Rates Hit All-Time Record-Breaking Low

RISMEDIA, April 4, 2009-Freddie Mac released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 4.78% with an average 0.7 point for the week ending April 2, 2009, down from last week’s average of 4.85%. Last year at this time, the 30-year FRM averaged 5.88%. The 30-year FRM has not been lower in the life of Freddie Mac’s weekly survey, which dates back to 1971 for the 30-year FRM.

The 15-year FRM was also down this week, averaging 4.52% with an average 0.7 point, down from last week when it averaged 4.58%. A year ago at this time, the 15-year FRM averaged 5.42% and has never been lower in the life of Freddie Mac’s weekly survey, which dates back to 1991 for the 15-year FRM.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 4.92% this week, with an average 0.7 point, down from last week when it averaged 4.96%. A year ago, the 5-year ARM averaged 5.59%. The 5-year ARM has never been lower in the life of Freddie Mac’s weekly survey, which dates back to 2005 for the 5-year ARM.

One-year Treasury-indexed ARMs averaged 4.75% this week with an average 0.6 point, down from last week when it averaged 4.85%. At this time last year, the 1-year ARM averaged 5.19% and has not been lower since the week ending September 29, 2005, when it averaged 4.68%.

“Mortgage rates followed other interest rates lower this week amid reports of slower economic growth” said Frank Nothaft, Freddie Mac vice president and chief economist. “The final estimate of economic growth in the fourth quarter was revised lower and personal incomes fell 0.2% in February, below the market consensus.

“On a positive note, pending existing home sales rose 2.1% in February, marking the second increase in three months as potential homebuyers are taking advantage of historically low mortgage rates and falling home prices. Serving as a spur to sales, housing affordability reached an all-time high in February 2009 since the series’ inception in 1971, according to the National Association of Realtors®. By region, sales surged by nearly a third in the Northeast and Midwest, but fell in the West.”

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