Average rates for 30-year fixed-rate mortgages (FRMs) hit a new low for the year in two weekly surveys. In addition, the average rate for five-year adjustable-rate mortgages (ARMs) set a record low in Freddie Mac’s (FRE: 0.00 N/A) weekly survey.

The Freddie Mac weekly survey put the average rate for a 30-year FRM at 4.93% with an average 0.7 origination point for the week ending May 13, down from last week’s average of 5%. A year ago, the 30-year FRM averaged 4.86%. It’s the lowest the Freddie Mac average has been since December 10, 2009, when it averaged 4.81%.

The Bankrate.com survey of large banks and thrifts put the average rate for a 30-year FRM at 5.07% with a 0.42 origination point, down from last week’s average of 5.12% and another low for the year.

Freddie Mac said the 15-year FRM averaged 4.3% with an average 0.6 point, down from last week when it averaged 4.36% and one year ago, when it averaged 4.52%. It’s the lowest average rate for the product since December 3, 2009, when it averaged 4.27%, Freddie Mac added.

Bankrate.com put the 15-year FRM at 4.45% with an average 0.42 origination point, down from last week’s average of 4.49%.

“If mortgage rates tumble across America and nobody sees it, did it really happen?” asked Bankrate.com’s Chris Kissell. “When the stock market suddenly plunged nearly 1,000 points in a few minutes May 6, mortgage rates also collapsed. By some accounts, rates fell to around 4.5% on the 30-year fixed and below 4% for some adjustable-rate mortgages.”

Freddie said the five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.95% with an average 0.6 point this week, down from last week when it averaged 3.97%, but above a year ago, when it averaged 4.82%. The five-year ARM has not been lower since Freddie Mac started tracking the product in January of 2005, the government-sponsored enterprise said.

The one-year Treasury-indexed ARM averaged 4.02% with an average 0.6 point, down from last week when it averaged 4.07% and a year ago, when it averaged 4.71%. The one-year ARM has not been lower since the week ending November 4, 2004, when it averaged 4%.

Write to Austin Kilgore.

The author held no relevant investments.

The US Senate added several amendments today to S 3217, the Restoring American Financial Stability Act sponsored by Sen. Chris Dodd (D-CT), that will require minimum mortgage underwriting standards and uphold the Federal Reserve's supervision of certain small banks.

Senators passed by a 63-36 vote an amendment sponsored by Sen. Jeff Merkley (D-OR) that requires lenders to maintain certain underwriting standards and verify mortgage borrowers' ability to repay based on income and assets other than the home's value. It also bans mortgage lenders and originators from accepting payments based on the interest rate or other terms of the loans, according to a statement from Merkley's office.

Senators agreed 90-9 on an amendment co-sponsored by Sens Kay Bailey Hutchison (R-TX) and Amy Klobuchar (D-MN) that maintains the Fed's role as the supervisor of bank holding companies and State member banks. The amendment ensures the ability of state-chartered banks and bank holding companies with less than $50bn in to choose Federal Reserve supervision, according to a statement from Hutchison's office.

Senators also agreed, by voice vote, an amendment by Sen. Olympia Snowe (R-ME) to exempt small businesses from the Consumer Financial Protection Agency (CFPA) set up in the Dodd bill.

Under the Snowe amendment, firms that fall under the Small Business Administration (SBA) classification system — as well as new firms that "reasonably" expect to fall under the SBA classification — would be exempt from CFPA oversight so long as the small business extends credit for the sale of non-financial goods and does not securitize its debt.

Senators rejected an amendment by Sen. Bob Corker (R-TN) that would have required a 5% minimum down payment by borrowers and additional credit enhancement for mortgages taken out at more than 80% loan-to-value, in lieu of credit risk retention.

Still pending votes are the Dodd-Lincoln amendment — which would bring the over-the-counter (OTC) derivatives market under greater transparency — and the Sen. Mary Landrieu (D-LA) amendment on credit risk retention exemption. The Landrieu amendment would exempt mortgages with certain underwriting standards — including high down payments and credit scores — from falling under risk retention requirements.

"What Senator Landrieu is saying is we're not going back when we make zero-down, interest-only, reverse amortization loans anymore, but we are going to make the good old days loan, where there is a down payment, where there's skin in the game, where there's an income-to-debt ratio and where the borrower is qualified to borrow the money that they're borrowing," said Sen. Johnny Isakson (R-GA), on the Senate floor today.

Isakson added: "The only risk retention that will be required is when somebody is making a bad loan which means people will stop making bad loans which means this bill and this amendment will address the measure that led to the failure in the housing market."

Senators on Tuesday shot down an amendment by Sen. John McCain (R-AZ) that would have set up a period of time for the government-sponsored entities (GSEs) Fannie Mae (FNM: 0.00 N/A) and Freddie Mac (FRE: 0.00 N/A) to exit conservatorship and wind down their businesses.

Instead, the Senate adopted through a 63-36 vote an amendment by Dodd that requires the Treasury Department to conduct a study on ending the conservatorship of Fannie and Freddie, and reforming the housing finance system.

Write to Diana Golobay.