Record low mortgage rates poised to drop below 4 percent

mortgagerates

Rates on conforming 30-year, fixed-rated mortgages (FRM) averaged a record low 4.01 percent for the week ending Sept. 29, down from 4.09 percent a week ago, according Freddie Mac’s weekly Primary Mortgage Market Survey.

The average 15-year FRM also dropped to another record low, 3.28 percent, down from 3.29 percent last week. Both the 30-year and 15-year FRM average came with an average 0.7 percent point.

Last year at this time, the average 30-year rate was 4.32 percent. The 15-year FRM was 3.75 percent, according to Freddie Mac.

Rates were already below 4 percent in the West. Of the five regions surveyed in Freddie Mac’s survey, the West region recorded a 3.95 percent average for the 30-year FRM.

“Fixed mortgage rates fell to all-time record lows this week following the Federal Reserve’s announcement of its Maturity Extension Program and additional purchases of mortgage-backed securities. Interest rates for ARMs, however, were nearly unchanged as the Federal Reserve plans to sell $400 billion in short-term Treasury securities, which serve as benchmarks for many ARMs,” said Frank Nothaft, vice president and chief economist at Freddie Mac.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.02 percent this week, with an average 0.6 point, unchanged from last week. The 5-year ARM averaged 3.52 percent a year ago.

Freddie Mac reported the 1-year Treasury-indexed ARM averaged 2.83 percent this week with an average 0.6 point, nearly unchanged from last week’s 2.82 percent. The 1-year ARM averaged 3.48 percent last year at this time.

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