National Real Estate - After a Weekly Increase, Mortgage Rates Fall to New Record Low



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After a Weekly Increase, Mortgage Rates Fall to New Record Low

 
Potential buyers who have been hesitant to purchase one of the many Florida homes for sale as the housing market recovers may be prompted by new record-low mortgage rates.

Tuesday, June 26th, 2012

 

Potential buyers who have been hesitant to purchase one of the many homes currently sale as the housing market recovers may be prompted by new record-low mortgage rates.

After six consecutive weeks of declines and new record-lows, mortgage rates were up during the week ending June 14. Freddie Mac's Primary Mortgage Market Survey for the week ending June 21 revealed the average rate for 30-year fixed-rate mortgages fell to 3.66 percent, down from the previous week when it was 3.78 percent and marking a new record.

This time last year, the 30-year FRM averaged 4.5 percent. While the average rate for 15-year fixed-rate mortgages didn't reach a new low, it did fall from the week before to 2.95 percent and remains significantly lower than a year ago, when it averaged 3.69 percent. According to the survey, the 5-year adjustable-rate mortgage rate average also reached its lowest level ever recorded at 2.77 percent.

Last week it averaged 2.8 percent and last year the 5-year ARM averaged 3.25 percent. When combined with low home prices, record-low mortgage rates provide first-time buyers high affordability while also providing current homeowners an opporunity to refinance.