How low can they go? Mortgage rate records fall again

August 7, 8:34 PM Real Estate News Examiner Broderick Perkins

Mortgage interest rates for 30-year, conforming, fixed-rate mortgages (FRMs), for the week ending August 5, averaged 4.49 percent, the lowest it’s been since Freddie Mac’s weekly Primary Mortgage Market Survey began in 1971.

The all time low for average 30-year rates came with an average 0.7 point and was down from 4.54 percent last week. The rate averaged 5.22 percent a year ago.

The 15-year FRM this week averaged 3.95 percent with an average 0.6 point, down from last week when it averaged 4.00 percent. A year ago at this time, the 15-year FRM averaged 4.63 percent, Freddie Mac reported. This week’s rate is the lowest the rate has been since 1991, when Freddie Mac started tracking the rate.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) also reached its lowest level since Freddie Mac began tracking it in 2005. It averaged 3.63 percent this week, with an average 0.6 point, down from last week’s 3.76 percent average. A year ago, the 5-year ARM averaged 4.73 percent.

Freddie Mac reported the 1-year Treasury-indexed ARM averaged 3.55 percent this week with an average 0.7 point, down from last week’s 3.64 percent average. Last year at this time, the 1-year ARM averaged 4.78 percent.

“And yet again, interest rates for fixed-rate mortgages and now the hybrid 5-year ARM fell to all-time record lows following the second quarter GDP release. This reduces inflationary pressures and allows longer-term rates room to ease, ” said Frank Nothaft, Freddie Mac vice president and chief economist.

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