15 Year Mortgage Rates Hit Record Low
The interest rate on 15-yearrnfixed-rate mortgages (FRM) set another record low this week, according torninformation released this morning by Freddie Mac.
The Primary Mortgage MarketrnSurvey for the week ended November 19 showed rates down across the board, withrnthe 15 year FRM averaging 4.32 percent, the lowest rate since Freddie Mac beganrntracking the mortgage in 1991. Last weekrnthe 15-year averaged 4.36 percent. Feesrnand points were unchanged at 0.6 point.
The 30-year FRM averaged 4.83rnpercent with 0.7 point, down from the average of 4.91 percent also with 0.7rnpoint a week earlier.
Five-year Treasury-indexedrnhybrid adjustable-rate mortgages (ARMs) averaged 4.25 percent, a decrease of 4rnbasis points. Fees and points werernunchanged at 0.6 point.
One-year Treasury-indexedrnARMs had an average rate of 4.35 percent compared to 4.46 percent during thernweek ended November 12. Fees and pointsrnincreased from 0.5 to 0.6 point.
Frank Nothaft, Freddie Mac vice president and chiefrneconomist said in a statement released with the survey results, “Interest raternon 30-year fixed-rate mortgage loans fell for the third consecutive week to thernlowest since the week ending May 21st, while 15-year fixed rates were thernlowest since our records began in 1991. Lowrnfixed rates throughout the third quarter prompted an estimated $1.1 trillion inrnrefinancing activity, saving homeowners about $10 billion in aggregate monthlyrnpayments over the first 12 months of their new loan. Moreover, for the fourthrnconsecutive quarter, more than 95 percent of prime borrowers who originally hadrnan ARM selected a conventional fixed-rate mortgage in the third quarter of thisrnyear.
“Meanwhile, new home building showed some weakness inrnrecent months. Residential construction eased 10.6 percent (annualized) betweenrnSeptember and October, largely driven by a 33.3 percent decline in newrncondominium and apartment buildings and represented the slowest pace sincernrecords began in 1959. And homebuilder confidence in November remained arnrelatively low level, according to the National Association of Home Builders.”
Fannie Mae's average yields for the week endedrnNovember 13 were also down. The 30-yearrnFRM dropped from 4.72 percent to 4.56 percent while the 15-year FRM fell belowrnfour percent to 3.98. The previous week thern15-year yield was 4.07 percent.
Government guaranteed FHA and VA loans were alsorndown with an average yield of 5.47 percent compared to 5.52 percent a weekrnearlier.
Only Fannie's one-year ARM showed an increase, inchingrnup to 2.94 percent from 2.93 percent.
AllrnFannie Mae yields are quoted net of servicing fees.
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