Mortgage Rates Finish 2011 Near Historic Lows
Location: McLean
Author:
Eileen Fitzpatrick
Date: Tuesday, January 3, 2012
Freddie Mac (OTC: FMCC) released the results of its Primary Mortgage
Market Survey (PMMS), showing average fixed mortgage rates finishing the
year near their all-time historic lows helping to keep homebuyer
affordability high. Averaging 3.95 percent, the 30-year fixed has been
at or below 4.00 percent for the past nine consecutive weeks and only
twice in 2011 did it average above 5.00 percent.
News Facts
-
30-year fixed-rate mortgage (FRM) averaged 3.95 percent with an
average 0.7 point for the week ending December 29, 2011, up from
last week when it averaged 3.91 percent. Last year at this time, the
30-year FRM averaged 4.86 percent.
-
15-year FRM this week averaged 3.24 percent with an average 0.8
point, up from last week when it averaged 3.21 percent.A year ago at
this time, the 15-year FRM averaged 4.20 percent.
-
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM)
averaged 2.88 percent this week, with an average 0.6 point,
up from last week when it averaged 2.85 percent. A year ago, the
5-year ARM averaged 3.77 percent.
-
1-year Treasury-indexed ARM averaged 2.78 percent this week with
an average 0.6 point, up from last week when it averaged 2.77
percent. At this time last year, the 1-year ARM averaged 3.26
percent.
Average commitment rates should be reported along with average fees
and points to reflect the total upfront cost of obtaining the mortgage.
Visit the following links for
Regional and National Mortgage Rate Details and
Definitions. Borrowers may still pay closing costs which are not
included in the survey.
Quotes
Attributed to Frank Nothaft, vice president and chief economist,
Freddie Mac.
- "Mortgage rates ended the year hovering near historic lows in an
already affordable housing market. For instance, the
seasonally-adjusted S&P/Case-Shiller® 20-City Composite
home price index in October was the lowest seen since March
2003. The largest hit areas were Las Vegas with the lowest reading
since January 1997 and Atlanta which was since June 1998. 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, according to
The Conference Board."
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