Shorter Term Mortgage Rates Fall Again to New Record Lows
The 30-year fixed-rate mortgage rate rose slightly for the third consecutive week. The 15-year fixed-rate mortgage rate eased back down a little while the 5-year and 1-year ARMs set another low.
Palm Coast, FL – November 4, 2010 – Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), which found that the 30-year fixed-rate mortgage rate rose slightly for the third consecutive week. The 15-year fixed-rate mortgage rate eased back down a little while the 5-year and 1-year ARMs set another low.
News Facts
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30-year fixed-rate mortgage (FRM) averaged 4.24 percent with an average 0.8 point for the week ending November 4, 2010, up slightly from last week when it averaged 4.23 percent. Last year at this time, the 30-year FRM averaged 4.98 percent.
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15-year FRM this week averaged 3.63 percent with an average 0.7 point, down from last week when it averaged 3.66 percent. A year ago at this time, the 15-year FRM averaged 4.40 percent.
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5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.39 percent this week, with an average 0.6 point, down from last week when it averaged 3.41 percent. A year ago, the 5-year ARM averaged 4.35 percent. The 5-year ARM has not been lower since Freddie Mac started tracking it in January 2005.
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1-year Treasury-indexed ARM averaged 3.26 percent this week with an average 0.7 point, down from last week when it averaged 3.30 percent. At this time last year, the 1-year ARM averaged 4.47 percent. The 1-year ARM sets another survey low this week.
Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.
“With little sign of inflation to push up long-term interest rates, fixed mortgage rates held relatively steady this week, while ARM rates hit new all-time record lows. The core price index for personal expenditures , a gauge closely followed by the Federal Reserve (Fed), rose 1.1 percent over the 12-months ending in September and represented the smallest increase since September 2001. In its November 3rd monetary policy committee statement, the Fed affirmed that measures of underlying inflation are somewhat low, relative to levels that the committee judges to be consistent, over the longer run, with its dual mandate,” said Frank Nothaft, vice president and chief economist, Freddie Mac.
Source: Freddie Mac
What if….
Recently announced QEII intend to reduce long term mortgage rate bellow 4%.
What if this this very low rate will not stimulate the housing market but create inflation?
RE:
I think long term will fall below 4%, I also think I will refi at that rate and be thrilled to do so!
Inflation won’t occur because what the news is not reporting is the VERY serious trouble that is headed to China and Japan via a huge bubble. We will be climbing out of this mess when they finally realize they are headed into it.
If bombs don’t start flying back and forth then we will be in good shape. Just in case borrow a few dollars more and stock up on ammo and canned food!