According to newly released data from Freddie Mac, mortgage rates are tumbling across the country.
“Fixed mortgage rates fell again this week to all-time record lows due to the mortgage securities purchases by the Federal Reserve and indicators of a weakening economy,” said Frank Nothaft, Freddie Mac’s chief economist.
From the release:
- 30-year fixed-rate mortgage (FRM) averaged 3.36 per cent with an average 0.6 point for the week ending October 4, 2012, down from last week when it averaged 3.40 per cent. Last year at this time, the 30-year FRM averaged 3.94 per cent.
- 15-year FRM this week averaged 2.69 per cent with an average 0.5 point, down from last week when it averaged 2.73 per cent. A year ago at this time, the 15-year FRM averaged 3.26 per cent.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.72 per cent this week with an average 0.6 point, up from last week when it averaged 2.71 per cent. A year ago, the 5-year ARM averaged 2.96 per cent.
- 1-year Treasury-indexed ARM averaged 2.57 per cent this week with an average 0.4 point, down from last week when it averaged 2.60 per cent. last week. At this time last year, the 1-year ARM averaged 2.95 per cent.
Here’s a long-term look at the 30-year fixed rate mortgage:
Photo: St. Louis Fed
Most importantly, Americans are going to their banks and taking advantage. Yesterday, the Mortgage Bankers Association said that mortgage puchase activity surged 16.6 per cent during the week ending September 28. The refinancing index surged 20 per cent to a three year high.