By Amy Hoak
Rates on conforming mortgages fell again this week, with the
30-year fixed-rate mortgage hitting a record low of 4.78% for the
week ending April 2, according to Freddie Mac's weekly survey
results released Thursday.
The 30-year fixed-rate mortgage averaged 4.85% last week, and
5.88% a year ago. This week, it's at its lowest level since the
survey began in 1971.
Rates on 15-year fixed-rate mortgages also hit a record low,
averaging 4.52% this week. The mortgage averaged 4.58% last week
and 5.42% a year ago. It hasn't been lower since Freddie Mac began
tracking the mortgage in 1991.
Five-year Treasury-indexed hybrid adjustable-rate mortgages
averaged 4.92%, another record low; Freddie Mac has tracked this
mortgage since 2005. The ARM averaged 4.96% last week and 5.59% a
year ago.
One-year Treasury-indexed ARMs averaged 4.75%, down from 4.85%
last week. The ARM averaged 5.19% a year ago. It hasn't been lower
since Sept. 29, 2005, when it averaged 4.68%.
To obtain the rates, the fixed-rate mortgages and the five-year
ARM required payment of an average 0.7 point. The one-year ARM
required an average 0.6 point. A point is 1% of the mortgage
amount, charged as prepaid interest.
"Mortgage rates followed other interest rates lower this week
amid reports of slower economic growth" said Frank Nothaft, Freddie
Mac chief economist, in a news release. "The final estimate of
economic growth in the fourth quarter was revised lower and
personal incomes fell 0.2% in February, below the market
consensus."
"On a positive note, pending existing home sales rose 2.1% in
February, marking the second increase in three months as potential
homebuyers are taking advantage of historically low mortgage rates
and falling home prices," he continued. "Serving as a spur to
sales, housing affordability reached an all-time high in February
2009 since the series' inception in 1971, according to the National
Association of Realtors. By region, sales surged by nearly a third
in the Northeast and Midwest, but fell in the West."
Earlier this week, the Mortgage Bankers Association reported
that the volume of mortgage applications filed for the week ended
March 27 rose a seasonally adjusted 3%, compared with the week
before.
-Amy Hoak; 415-439-6400; AskNewswires@dowjones.com