Mortgage Rates Decline, Mortgage Applications Advance

Freddie Macs mortgage market survey released on December 24, 2008 showed mortgage rates down again.  The report revealed that the 30-year fixed-rate mortgage averaged 5.14 percent down from last week when it averaged 5.19 percent. This is the eighth week of declining rates for the 30 year fixed rate mortgage.  The rate on the 30 year mortgage is now the lowest since Freddie Mac’s weekly mortgage rate survey began in April 1971.  Last year at this time, the 30-year FRM averaged 6.17 percent.

The 15-year fixed rate mortgage was also down fro the week and averaged 4.91 percent.  This is down slightly from last week when the 15 year fixed rate mortgage averaged 4.92 percent.  A year ago at this time, the rate averaged 5.79 percent. The 15-year fixed rate mortgage has not reached these levels since 2004.  

The five-year Treasury indexed hybrid adjustable rate mortgages averaged 5.87 percent for the week.  This brings the rate on the 5 year hybrid ARM down measurably from last weeks 5.98 percent.   A year ago, the 5-year ARM stood at 5.88 percent.
The One-year Treasury indexed adjustable rate mortgages averaged 5.29 percent for the week down from last weeks 5.33 percent.  Last year, the 1-year ARM averaged 5.42 percent.

Rates have dropped significantly since the fed announced they would use federal funds to purchase mortgage backed securities and to add liquidity and bring down mortgage rates.  Refinancing activity has surged in the past two weeks due to the lower mortgage rates as well as the media attention these rates are getting.

This entry was posted on Friday, December 26th, 2008 at 7:44 pm and is filed under Credit and Rate News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.