New year’s fixed rate at record low

mortgagerates

Rates on conforming, 30-year, fixed-rated mortgages (FRM) averaged 3.91 percent, with an average 0.8 point, the week ending Jan. 5, 2011, matching the all-time record low and marking the fifth consecutive week the rate was below 4 percent.

According Freddie Mac’s weekly Primary Mortgage Market Survey the 30-year FRM was 3.95 percent last week and 4.77 percent a year ago.

The return to the record low interest rate average comes amid signs of improvement in housing and manufacturing.

“Pending existing home sales in November jumped 7.3 percent, nearly five times greater than the market consensus forecast, to its strongest pace since April 2010. In addition, construction spending rose 1.2 percent in November, supported by the residential sector which exhibited its fourth consecutive monthly increase. Similarly, manufacturing expanded in December at the fastest pace in six months,” said Frank Nothaft, vice president and chief economist, Freddie Mac.

The average rate on the 15-year FRM was 3.23 percent with an average 0.8 point, down from last week’s 3.24 percent average. The rate was 4.13 percent a year ago.

Near the record 2.85 percent low, the 5-year Treasury-indexed hybrid adjustable rate mortgage (ARM) averaged 2.86 percent this week, with an average 0.7 point. The 5-year ARM averaged 2.88 percent last week and 3.75 percent a year ago.

Finally, for the week ending Jan. 5, Freddie Mac reported the 1-year Treasury-indexed ARM averaged 2.80 percent this week, with an average 0.6 point, up from 2.78 percent last week. Last year at this time the rate was 3.24 percent.

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