Fixed-rate mortgage rates hit low again

30-year fixed-rate mortgage now at 3.83%: Freddie Mac

May 10, 2012|

CHICAGO— Rates on fixed-rate mortgages hit record lows this week, with the 30-year fixed-rate mortgage averaging 3.83% in Freddie Mac’s most recent survey of conforming mortgage rates, released Thursday.

“Following April’s weaker-than-expected employment report, and the French and Greek election results raising concerns over the stability of the Euro currency zone, long-term Treasury bond yields declined allowing fixed mortgage rates to ease to new all-time record lows this week,” Frank Nothaft, vice president and chief economist of Freddie Mac, said in a news release.

The 30-year fixed-rate mortgage averaged 3.84% last week and 4.63% a year ago.

Rates on the 15-year fixed-rate mortgage averaged 3.05% for the week ending May 10, down from 3.07% last week and 3.82% a year ago, according to the Freddie Mac survey.

Average interest rates on 5-year Treasury-indexed hybrid adjustable-rate mortgages averaged 2.81%, down from 2.85% last week and 3.41% a year ago.

 

But rates on 1-year Treasury-indexed ARMs rose, averaging 2.73%, up from 2.7% last week. The ARM averaged 3.11% a year ago.

To obtain those rates, the fixed-rate mortgages required payment of an average 0.7 point and the ARMs required an average 0.5 point. A point is 1% of the mortgage amount, charged as prepaid interest.

Rates for 30-year fixed-rate conforming mortgages also fell to a record low in the Mortgage Bankers Association’s weekly survey, released Wednesday. The MBA reported that mortgage applications increased 1.7% for the week ending May 4, compared with the week before.