30-Year FRM Rates Drop Dramatically

The average rate for a 30-year fixed-rate mortgage during the week ended Dec. 3 saw its largest weekly drop since Nov. 27, 1981, and fell to a low not seen since Jan. 24, according to Freddie Mac. The 30-year rate during the week, at 5.53%, was down from 5.97% the week before and from 5.96% a year ago, Freddie Mac said. "After Federal Reserve actions to increase liquidity in the mortgage market, interest rates for fixed-rate mortgages (FRMs) took a dive," said Frank Nothaft, Freddie Mac vice president and chief economist. "This week's decline was the largest since the week of Nov. 27, 1981, and 30-year FRM rates are now almost a full percentage point lower since the last week in October." The average rate for a 15-year FRM fell to 5.33% from 5.74% the week before and 5.65% a year ago, the average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage slid to 5.77% from 5.86% on the week but was up from 5.75% a year ago, and the average rate for a one-year Treasury-indexed ARM decreased to 5.02% from 5.18% the previous week and from 5.46% a year ago. Average points were 0.7 for 30- and 15-year FRMs, 0.6 for five-year hybrids and 0.5 for one-year ARMs.