Freddie Mac survey reports mortgage rates reach all-time low
Jan 12 2012 5:28PM
The most recent Freddie Mac Primary Mortgage Market Survey shows that mortgage rates have reached a new record low and continue to provide new homeowners high affordability.
Results from the survey show that the 30-year fixed-rate mortgage averaged 3.89 percent for the week ending January 12, falling just below the previous week's average of 3.91 percent. This time last year the 30-year FRM averaged 4.71 percent.
The survey also shows a decrease in rates for 15-year FRMs, as this week's average fell to 3.16 percent from the previous week's 3.23 percent average. At this point in 2011, the 15-year FRM was 4.08 percent.
In addition to a fall in average among FRMs, the 5-year adjustable-rate mortgage averaged 2.82 percent, just below the 2.86 percent reported the week prior.
"Mortgage rates eased slightly this week to all-time record lows following mixed indicators in the labor market," said Frank Nothaft, vice president and chief economist of Freddie Mac. "Although the economy added 1.6 million jobs in 2011, which was the most since 2006, the unemployment rate remained historically elevated."
Many economists advise potential buyers who have been on the fence about becoming a homeowner to take advantage of the historically low rates and home prices.