Freddie Mortgage Rates Slide Under 5 Percent to Mark Yearly Low
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) 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.