Just a week after Freddie Mac announced that fixed mortgage rates had fallen to all-time record lows, the rates dropped again, dipping below 4 percent for the first time in history, according to Freddie Mac.
Freddie Mac economists attribute the fall to increasing global economic concerns.
The 15-year fixed rate, a popular refinancing option, also fell to the lowest level on record for the sixth consecutive week.
“Average 30-year conventional fixed mortgage rates fell below 4 percent for the first time in history this week following a sharp drop in 10-year Treasuries early in the week as concerns over a global recession grew,” according to Frank Nothaft, Freddie’s Vice President and Chief Economist. “Average 15-year fixed rates fell to a record low in the PMMS as well. Interest rates for 1-year ARMs, however, rose, as the Fed began replacing $400 billion of its short-term Treasury securities, which serve as benchmarks for many ARMs. Also, in his testimony to Congress’s Joint Economic Committee on Tuesday, Federal Reserve Chairman Bernanke said the recovery is close to ‘faltering’ and stressed the need for lawmakers to act,” Nothaft explains.
30-year fixed-rate mortgage (FRM) averaged 3.94 percent with an average 0.8 point for the week ending October 6, 2011, down from last week when it averaged 4.01 percent. Last year at this time, the 30-year FRM averaged 4.27 percent.
15-year FRM this week averaged 3.26 percent with an average 0.8 point, down from last week when it averaged 3.28 percent. A year ago at this time, the 15-year FRM averaged 3.72 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.96 percent this week, with an average 0.6 point, down from last week when it also averaged 3.02 percent. A year ago, the 5-year ARM averaged 3.47 percent.
1-year Treasury-indexed ARM averaged 2.95 percent this week with an average 0.5 point, up from last week when it averaged 2.83 percent. At this time last year, the 1-year ARM averaged 3.40 percent.
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