Fixed-rate Mortgages Remain at or Near All-time Lows

Freddie Mac (OTC: FMCC) recently released the results of its Primary Mortgage Market Survey® (PMMS®), showing fixed-rate mortgages at or near their 60-year lows helping to drive record high homebuyer affordability. The 15-year fixed, a popular choice among refinance borrowers, averaged a new all-time record low of 3.13 percent.

The survey shows that the 30-year fixed-rate mortgage (FRM) averaged 3.88 percent with an average 0.8 point for the week ending March 8, 2012, down from the previous week when it averaged 3.90 percent. Last year at this time, the 30-year FRM averaged 4.88 percent.

Additionally, the 15-year FRM averaged 3.13 percent with an average 0.8 point, down from the last week when it averaged 3.17 percent. A year ago at this time, the 15-year FRM averaged 4.15 percent.

Results showed that the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.81 percent, with an average 0.7 point, down from the last week when it averaged 2.83 percent. A year ago, the 5-year ARM averaged 3.73 percent.

The 1-year Treasury-indexed ARM averaged 2.73 percent with an average 0.6 point, up from the last week when it averaged 2.72 percent. At this time last year, the 1-year ARM averaged 3.21 percent.

"With these historically low rates and declining house prices, the typical family had more than double the income needed to purchase a median-priced home in January, according to the National Association of RREALTORS® Housing Affordability Index which registered the highest reading since records began in 1970,” says Frank Nothaft, vice president and chief economist, Freddie Mac.

“In fact, the Corelogic® National Home Price Index fell for the sixth consecutive month in January to the lowest level since January 2003. This high level of affordability likely contributed to the recent two-week rise ending March 2nd in mortgage applications for home purchases."

For more information, visit www.freddiemac.com.

Mike Spruell
Realtor®/Broker/ePRO
The Lake Norman Homes Team
Keller Williams Realty
www.LakeNormanRealEstate.pro
866-LakeNorman
704-907-7907