30 Year Fixed Rate Still Under 5 - 23 Weeks in A Row

Today Freddie Mac released the results of its Primary Mortgage Market Survey® (PMMS®), which found that the 30-year fixed-rate mortgage rate fell again to break the survey’s all-time low; the 30-year FRM has been under 5 percent for 23 weeks in a row. The last time our market saw rates this low Harry S Truman was President of the United States, a first-class stamp cost $0.03 and unemployment was 5.3%. If some of you must ask, the year was 1951. Times are much different from those days, but one thing is the same, THE INTEREST RATE!

Frank Nothaft, vice president and chief economist of Freddie Mac, notes, "September’s employment report held no big surprises to financial markets, allowing long-term bond yields and fix mortgage rates to continue to ease. As a result, both the 30-year and 15-year fixed mortgage rates hit all-time record lows for the third consecutive week."

30-year fixed-rate mortgage (FRM) averaged 4.19 percent with an average 0.8 point for the week ending October 14, 2010, down from last week when it averaged 4.27 percent. Last year at this time, the 30-year FRM averaged 4.92 percent.

15-year FRM this week averaged a record low of 3.62 percent with an average 0.7 point, down from last week when it averaged 3.72 percent. A year ago at this time, the 15-year FRM averaged 4.37 percent.

Have I lost you yet? Basically we are at record lows for interest rates, and when we mean low, we really mean LOW! Like history making low. How has this affected our market? Experts believe the low interest rates are a good part of the increase in pending sales over the last couple of months. Our inventory is up, prices are down, recovery may be slow but it is here, and interest rates are LOW.

"Historically low rates have spurred yet another refinancing wave. Conventional mortgage applications for refinance jumped 24 percent over the week of October 8th to the strongest pace since mid-April 2009, according to the Mortgage Bankers Association. By refinancing into this week’s 30-year fixed-rate mortgage, the average homeowner could save over $230 a month in principal and interest payments on a $200,000 loan balance."

So in a nutshell, buying a home, or just holding on to the one you have, now is a great time.

excerpts from RealtyTimes.com

Posted in: 30 year fixed,ARM,fixed mortgage rates,freddie mac