Long Term Mortgage Rates at 4.87% Says Freddie

Freddie Mac just released its Primary Mortgage Market Survey this morning which shows long term mortgage rates continuing their decline. Both 30 year mortgage rates and 15 year mortgage rates are lower this week.  Adjustable rate mortgages were mixed, 5 year adjustable mortgage rates were lower while one year adjustable mortgage rates were higher.

Mortgage Rates Current

For the week ending October 8, 2009, 30 year mortgage rates are at 4.87 percent, down from the prior week’s average mortgage rate of 4.94 percent. Average discount points remained the same at 0.7 points.  30 year mortgage rates are at the the lowest level since May of 2009.  A year ago at this time 30 year mortgage interest rates were averaging 5.94 percent.

The average 15 year mortgage rate is down to 4.33 percent from the previous week’s average mortgage rate of 4.36 percent. This is the lowest 15 year mortgage rate since Freddie started tracking it in 1991. Average discount points are at 0.7 points. Last year at this time 15 year home loan rates were at 5.62 percent.

Adjustable Mortgage Rates

5 year Treasury Indexed adjustable mortgage rates are at 4.35 percent this week, down from last week’s average loan rate of 4.42 percent. Average discount points on a 5/1 ARM are at 0.5 points. This low mortgage rate is the lowest 5 year rate since Freddie starting tracking it in 2005.

One year Treasury Indexed adjustable rate mortgages were higher this week, the current one year ARM is at 4.53 percent, up from the prior week’s average home loan rate of 4.49 percent. Average discount points are at 0.5 points.

Freddie Mac’s vice president and chief economist Frank Nothaft had the following comments about current mortgage rates:

Long-term mortgage rates eased further this week. Interest rates for 30-year fixed-rate loans were the lowest since mid-May; 15-year FRMs were at a record low since data were first collected in 1991 and 5-year ARMs also hit an all-time record starting in 2005.  Compared to a year ago, consumers could shave almost $134 off their monthly mortgage payments on a 30-year fixed-rate loan for $200,000 by refinancing.

According to the Mortgage Bankers Association, “Such low rates are spurring mortgage demand. Mortgage applications surged to a 19-week high over the week ending on October 2^nd.  Moreover, applications for home purchases were at the strongest pace since the beginning of this year.”