Freddie Mac says all loan products covered in its regular weekly market survey eased to set new all-time lows for the week ending January 12, 2011.
The average rate for the 30-year fixed mortgage has been below 4.00 percent for six consecutive weeks now. This week, it dropped to 3.89 percent (0.7 point), down from 3.91 percent last week. Last year at this time, the 30-year rate averaged 4.71 percent.
The 15-year fixed-rate mortgage this week averaged 3.16 percent (0.8 point), falling from 3.23 percent last week. A year ago at this time, the 15-year fixed mortgage averaged 4.08 percent.
Adjustable-rate mortgages (ARMs) also declined to hit new record lows. The 5-year ARM is now averaging 2.82 percent (0.7 point), down from last week’s average of 2.86 percent. This time last year, the 5-year ARM was 3.72 percent.
The 1-year ARM averaged 2.76 percent (0.6 point) this week, compared to 2.80 percent last week. Dial back 12 months, and the 1-year ARM came in at 3.23 percent.
Freddie Mac’s chief economist Frank Nothaft notes that declines appeared across all loan products even with news of mixed indicators in the labor market.
“Although the economy added 1.6 million jobs in 2011, which was the most since 2006, the unemployment rate remained historically elevated. The 2009 to 2011 period had the highest three-year average unemployment rate since 1939 to 1941,” according to Nothaft.
He adds that “the Federal Reserve indicated in its January 11th regional economic review that most industries saw limited permanent hiring at the end of last year.”
Freddie Mac’s weekly mortgage rate survey is based on data gathered from 125 lenders – including thrifts, credit unions, commercial banks, and mortgage companies – from across the country.
Adjustable-rate mortgages (ARMs) also declined to hit new record lows. The 5-year ARM is now averaging 2.82 percent (0.7 point), down from last week’s average of 2.86 percent. This time last year, the 5-year ARM was 3.72 percent.
The 1-year ARM averaged 2.76 percent (0.6 point) this week, compared to 2.80 percent last week. Dial back 12 months, and the 1-year ARM came in at 3.23 percent.
Freddie Mac’s chief economist Frank Nothaft notes that declines appeared across all loan products even with news of mixed indicators in the labor market.
“Although the economy added 1.6 million jobs in 2011, which was the most since 2006, the unemployment rate remained historically elevated. The 2009 to 2011 period had the highest three-year average unemployment rate since 1939 to 1941,” according to Nothaft.
He adds that “the Federal Reserve indicated in its January 11th regional economic review that most industries saw limited permanent hiring at the end of last year.”
Freddie Mac’s weekly mortgage rate survey is based on data gathered from 125 lenders – including thrifts, credit unions, commercial banks, and mortgage companies – from across the country.
SOURCE: DSNEWS.com
