Thirty-year fixed-rate mortgages interest rates fell to their lowest level on record, according to Freddie Mac’s Primary Mortgage Market survey released Dec. 18.

The national average interest rate for 30-year fixed-rate mortgages was 5.19 percent for the week ending Dec. 18, the lowest level since McLean, Va.-based Freddie Mac (NYSE: FRE) began the survey in 1971.

Rates were down from last week when it averaged 5.47 percent. A year ago, the mortgages averaged 6.14 percent.

The 15-year fixed-rate mortgage averaged 4.92 percent, down from 5.2 percent last week and 5.79 percent a year ago.

The 15-year rates have not been lower since April 1, 2004, when they averaged 4.84 percent.
“The decline [in 30-year fixed-rate mortgages] was supported by the Federal Reserve announcement on Dec. 16, when it cut the federal funds target to a record low and stated it stood ready to expand its purchases of mortgage-related assets as conditions warrant,” said Frank Nothaft, Freddie Mac vice president and chief economist in a statement.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.60 percent this week, down from last week when it averaged 5.82 percent. A year ago, the 5-year ARM averaged 5.90 percent.

One-year Treasury-indexed ARMs averaged 4.94 percent this week, down from last week when it averaged 5.09 percent. At this time last year, the 1-year ARM averaged 5.51 percent.

Source:             BizJournal