2011′s final mortgage rates remain at historic lows


Rates on conforming, 30-year, fixed-rated mortgages (FRM) averaged 3.95 percent, with an average 0.7 point, the week ending Dec. 29, 2011, up from last week’s all-time record low of 3.91 percent.

According Freddie Mac’s weekly Primary Mortgage Market Survey the 30-year FRM was 4.86 percent last year at this time.

The trend of low interest rates, along with low home prices, is boosting consumer confidence.

“Mortgage rates ended the year hovering near historic lows in an already affordable housing market. The seasonally-adjusted S&P/Case-Shiller 20-City Composite home price index in October was the lowest seen since March 2003,” said Frank Nothaft, vice president and chief economist, Freddie Mac.

“It’s not surprising then that over 5 percent of households in December plan to purchase a home over the next six months, the highest share since May,” said Nothaft, citing Conference Board data.

The average rate on the 15-year FRM was 3.24 percent with an average 0.8 point and also up from a record low 3.21 percent from the prior two weeks. The rate was 4.20 percent a year ago.

Also up from the record 2.85 percent low last week, the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.88 percent this week, with an average 0.6 point. The 5-year ARM averaged 3.77 percent a year ago.

Finally, for the week ending Dec. 29, Freddie Mac reported the 1-year Treasury-indexed ARM averaged 2.78 percent, with an average 0.6 point, nearly on par with the record 277 percent last week. Last year at this time the rate was 3.26 percent.

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