30-Year Rate Sinks to Another Low

The average 30-year fixed mortgage rate sank to yet another survey-record low of 5.85% for the week ending Jan. 3 from 5.93% the previous week, according to Freddie Mac's Primary Mortgage Market Survey.Freddie Mac began tracking the rate in 1971, but the government-sponsored enterprise said figures compiled by the Federal Housing Finance Board indicate that it has not been this low since the early 1960s. The average 15-year fixed mortgage rate fell from 5.32% to a survey-record low of 5.24%, while the average rate for one-year Treasury-indexed adjustable-rate mortgages rose from a survey-record low of 4.01% to 4.06%. Fees and points averaged 0.6 points for fixed-rate mortgages and 0.7 points for ARMs. "Just when we were sure mortgage rates couldn't possibly drop any lower, we were surprised yet again," said Frank Nothaft, Freddie Mac's chief economist. "Current issues such as the possibility of military actions abroad, heightened terrorism alerts, and an unexpected drop in consumer confidence contributed to the decline in mortgage rates this week." A year ago, the average 30-year and 15-year fixed rates were 7.14% and 6.62%, respectively, and the average one-year ARM rate was 5.26%, Freddie Mac said. Freddie Mac can be found on the Web at http://www.freddiemac.com.