Mortgage rates rack up more record lows after Federal Reserve vows to keep rates low through 2015

fallingrates

Following the Federal Reserve’s plans to keep interest rates low through 2015, the average 30-year fixed-rate mortgage (FRM) came in at 3.49 percent, with an average 0.6 point, for the week ending Sept. 20, matching its all-time record low, according to Freddie Mac’s Primary Mortgage Market Survey.

“Following the Federal Reserve’s announcement of a new bond purchase plan, yields on mortgage-backed securities fell, bringing average fixed mortgage interest rates to their all-time record lows which should aid in the ongoing housing recovery,” said Frank Nothaft, vice president and chief economist at Freddie Mac.

The Fed announced last week it will bump its $45 billion-per-month purchase of mortgage-backed securities up to $85 million a month to keep rates low for the next several years.

The stimulus could be a windfall for homebuyers who need more time to cash in on low mortgage interest rates.

The 3.49 percent average rate on the 30-year fixed-rate mortgage (FRM) was down from 3.55 percent last week and 4.09 percent a year ago.

The average rate on the 15-year FRM fell to a new record low, 2.77 percent, with an average 0.6 point, down from 2.85 percent last week and 3.29 percent last year.

The 5-year Treasury-indexed hybrid’s average adjustable rate (ARM) was 2.76 percent this week, with an average 0.6 point. Last week it averaged 2.72 percent. The 5-year ARM averaged 3.02 percent a year ago.

Finally, for the week ending Sept. 20, Freddie Mac reported the 1-year Treasury-indexed ARM averaged 2.61 percent, with an average 0.4 point, unchanged from the last two weeks, and down from 2.82 percent a year ago.

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