Freddie Mac released the results of its Primary Mortgage Market Survey® showing mortgage rates, fixed and adjustable, reaching all-time record lows. The 30-year fixed averaged 4.15 percent, breaking the previous record low of 4.17 percent set November 11, 2010.
According to the survey, 30-year fixed-rate mortgage (FRM) averaged 4.15 percent with an average 0.7 point for the week ending August 18, 2011, down from the last week when it averaged 4.32 percent. Last year at this time, the 30-year FRM averaged 4.42 percent.
Additionally, 15-year FRM averaged 3.36 percent with an average 0.6 point, down from last week when it averaged 3.50 percent. A year ago at this time, the 15-year FRM averaged 3.90 percent.
Results also showed that the five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.08, with an average 0.5 point, down from the previous week when it averaged 3.13 percent. A year ago, the 5-year ARM averaged 3.56 percent.
The one-year Treasury-indexed ARM averaged 2.86 percent with an average 0.6 point, down from the last week when it averaged 2.89 percent. At this time last year, the 1-year ARM averaged 3.53 percent.
Thirty year fixed mortgage rates are now the lowest in over 50 years. In comparison, the Bureau of Economic Analysis estimated the average effective mortgage rate was about 5.3 percent on single-family loans outstanding during the second quarter of 2011.
The environment of ultra low mortgage rates, lower home prices, and abundant inventory combine to make this an attractive time to buy a home.
