Mortgage rates lowest in more than 50 years

Mortgage interest rates dropped to their lowest level in more than a half century as 30-year, conforming, fixed-rate mortgages (FRMs) sank to an average 4.15 percent for the week ending August 18.

by Broderick Perkins
© 2011 DeadlineNews.Com

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Deadline Newsroom - Mortgage interest rates dropped to their lowest level in more than 50 years as 30-year, conforming, fixed-rate mortgages (FRMs) sank to an average 4.15 percent for the week ending August 18, according to Freddie Mac's weekly Primary Mortgage Market Survey. The rate broke the previous record of 4.17 percent, set on November 11, 2010.

The average 30-year rate came with an average 0.7 point and was down from last week's 4.32 percent. The rate was 4.42 percent a year ago.

The 15-year FRM this week averaged 3.36 percent with an average 0.6 point, below last week's already historical low of 3.50 percent. A year ago at this time, the 15-year FRM averaged 3.90 percent, Freddie Mac reported.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.08 percent this week with an average 0.5 point, down from last week's 3.13 percent. This also represented a new historical low. The 5-year ARM averaged 3.56 percent a year ago.

Freddie Mac reported the 1-year Treasury-indexed ARM averaged an all-time low 2.86 percent this week with an average 0.6 point. It dropped from last week's average of 2.89 percent. The 1-year ARM averaged 3.53 percent at this time last year.

Frank Nothaft, Freddie Mac vice president and chief economist, said, "The Federal Reserve's policy statement last week and ongoing market concerns over the European debt market carried momentum into this week, allowing all mortgage products in our survey to reach all-time record lows. For instance, 30-year fixed mortgage rates are now the lowest in over 50 years. In comparison, the Bureau of Economic Analysis estimated the average effective mortgage rate was about 5.3 percent on single-family loans outstanding during the second quarter of 2011."

Crystal Chow is a DeadlineNews Group associate editor who contributed to this article.

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