30-Year Rate Hits Record Low

The average 30-year fixed mortgage rate hit a record low during the week ending Sept. 18, falling from 6.77% to 6.66% (with fees and points averaging 0.9), according to Freddie Mac's Primary Mortgage Market Survey.The previous low for the 30-year rate in the 27-year history of the survey was 6.74% (with fees and points averaging 1.5), during the week of Oct. 22, 1993, Freddie Mac said. The average 15-year fixed mortgage rate fell to 6.35% from 6.43% (with fees and points averaging 0.9), its lowest level since the 6.31% (with fees and points averaging 1.5) recorded the week ended Oct. 22, 1993. The average rate for one-year Treasury-indexed adjustable-rate mortgages declined to 5.43% from 5.50%, with fees and points averaging 1.1. "Mortgage rates fell to record-breaking low levels this week," said Robert Van Order, Freddie Mac's chief economist. "With interest rates so affordable, we have entered another refi boom. Many homeowners with mortgages that were just recently considered too low to refinance now have the opportunity to move into even lower rate loans, and we fully expect the refi market to continue to flourish." A year ago, the average 30-year and 15-year fixed rates were 7.38% and 6.94%, respectively, and the average one-year ARM rate was 5.53%. Freddie Mac's website address is http://www.freddiemac.com.