30-Year Rate Nears All-Time Low

The average 30-year fixed mortgage rate neared its all-time low during the week ending Sept. 11, falling from 6.82% to 6.77% (with fees and points averaging 1.0), according to Freddie Mac's Primary Mortgage Market Survey.The lowest 30-year rate in the 28-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 6.43% from 6.51% (with fees and points averaging 1.0), its lowest level since the 6.40% (with fees and points averaging 1.5) recorded the week ended Oct. 29, 1993. The average rate for one-year Treasury-indexed adjustable-rate mortgages decreased to 5.50% from 5.51%, with fees and points averaging 1.1. "Not only have mortgage rates fallen to historical lows, they have remained at such levels for a record-breaking 13 weeks," said Robert Van Order, Freddie Mac's chief economist. "The real news, however, is that they may very well average out even lower next week. Because of the continued low rates, the Mortgage Bankers Association reports 50% of applications for mortgages are refinancings, prolonging the refi boom far longer than was ever expected." A year ago, the average 30-year and 15-year fixed rates were 7.53% and 7.07%, respectively, and the average one-year ARM rate was 5.59%. Freddie Mac's website address is http://www.freddiemac.com.