Record low mortgage rates on five-year ARM

Mortgage rates on 5-year adjustable rate mortgages (ARMs) reached another low this week. Mortgage rates on five-year ARMs were 4.80 percent with an average 0.6 point, down from last week when rates were 4.85 percent.

One-year ARMs averaged 4.77 percent with an average 0.7 point, down from last week when the average rates 4.85 percent. 

30-year fixed mortgage rates tied a record low of 4.78 percent with an average 0.7 point, down from 4.80 percent. 15-year fixed mortgage rates remained under 4.50 percent for the third straight week at 4.48 percent with an average 0.7 point.

Record low mortgage rates are helping to put a bottom in the housing recession. Housing prices have increased 0.7 percent in February 2009 compared to prices in January 2009.  Year over year prices have still declined 6.5 percent.  Read more: home sales

Frank Nothaft, Freddie Mac vice president and chief economist said “The housing market may be edging towards a bottom. Existing home sales stayed near its four-month average in March while new home sales were stronger than the market consensus. More importantly, the inventory of unsold new homes fell to the lowest number since January 2002. And, the S&P/Case-Shiller® 20-city composite index did not show a record year-over-year decline in February for the first time since December 2006. Finally, housing affordability hit record highs in the first quarter of this year, according to figures from the National Association of Realtors, which date back to January 1971.”