This fall, according to a recent Freddie Mac Primary Mortgage Market Survey, fixed mortgage rates shattered their former average record lows, maintaining the current level of real estate affordability for potential homebuyers. In support of the improving housing market, all mortgage products, with the exception of the five-year adjustable-rate mortgage (ARM), averaged unprecedented lows.
Chief economist and vice president of Freddie Mac, Frank Nothaft, attributes the recent decrease in mortgage rates to the Federal Reserve’s purchases of mortgage securities.
As of September 27, 2012, 30-year fixed-rate mortgage (FRM) averaged 3.40%, with an average 0.6 point, whereas last year at the same time, the fixed-rate mortgages were averaging 4.01%.
The 15-year FRM average during the same week was 2.71%, a 0.6 point drop from the week prior, when the rate averaged 2.76%. Just a year ago, the 5-year ARM was at 3.02%.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage during September 27th was at 2.71%, down from the previous week at 2.76%. One year ago, the average 5-year ARM was 3.02%.
Finally, of course, the 1-year Treasury-indexed ARM showed the same decrease during the last week of September, compared with 2.61% the week prior.
While the real estate market remains hot and home purchases are made, Colony Title Associates can help you close on the deal and guarantee you peace of mind by performing title searches on the property you acquire and insuring you against any title defects.