A weakening economy and the Federal Reserve’s continued purchase of mortgage securities took the 30-year, fixed-rate mortgage to historic lows for the second straight week

The Freddie Mac survey showed the 30-year FRM averaged 3.36% for the week ending Thursday, falling below the all-time low of 3.4% set last week. Last year at this time, the 30-year FRM averaged 3.94%.

The 15-year FRM, a popular refinancing choice, averaged 2.69%, falling from 2.73% last week and setting a new record low. A year ago, the average rate for a 15-year FRM was 3.26%.

Five-year, Treasury-indexed, hybrid adjustable-rate mortgage averaged 2.72%, up a bit from 2.71% last week and falling from 2.96% a year earlier.

The Federal Reserve’s purchase of long-term fixed mortgage securities pushed 15-year FRMs below 5-year ARMs for the first time since the week of October 15, 2009.

One-year, Treasury-indexed ARMs averaged 2.57%, down from last week’s 2.60%. A year ago, it averaged 2.95%.

Freddie Chief Economist Frank Nothaft cited a weakening economy as a reason for the historic lows.

The final estimate of growth in gross domestic product was revised down to 1.3% in the second quarter, representing the slowest growth in a year. Personal incomes rose only 0.1% in August, while July’s increase was revised downward.

And pending home sales in August fell 2.6%, well below the market consensus forecast of a slight increase.

Home loan analytics firm Bankrate, which surveys large banks, reported that the 30-year FRM fell to 3.52% from 3.55%, while the 15-year FRM dropped to 2.84% from 2.88%. The 5/1 ARM slipped to 2.67% from 2.68% for the week.

jhilley@housingwire.com

@JustinHilley

Most Popular Articles

Are mortgage rates about to hit an all-time low?

The lowest mortgage rates have ever been was around Thanksgiving 2012 when the interest rate for a 30-year fixed-rate mortgage fell to 3.31% (according to Freddie Mac data), but rising panic over the coronavirus could drive rates to lows never seen before. HW+ Premium Content

Feb 25, 2020 By

Latest Articles

The looming concerns servicers might be ignoring

Breaking down the biggest trends and concerns servicers should be thinking about, TMS Chief Compliance Officer Shanya Arrington sat down with HousingWire to offer some exclusive insights on what’s happening in the servicing space. HW+ Premium Content

Feb 27, 2020 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please