Freddie Survey Finds Rates Continue to Tumble

The average rate for a 30-year fixed-rate mortgage has dropped further below 5% to a point not seen since mid-May, and average 15- and five-year mortgage rates have fallen to survey-record lows, according to Freddie Mac's most recent Primary Mortgage Market Survey. The average 30-year FRM rate slid to 4.87% from 4.94% a week ago and 5.94% a year ago; the average 15-year FRM rate descended to 4.33% from 4.36% a week ago and 5.63% a year ago; and the average rate for a five-year Treasury indexed hybrid adjustable-rate mortgage decreased to 4.35% from 4.42% a week ago and 5.90% a year ago. "Fifteen-year FRMs were at a record low since data were first collected in 1991 and five-year ARMs also hit an all-time record starting in 2005," said Frank Nothaft, Freddie Mac vice president and chief economist. "Compared to a year ago, consumers could shave almost $134 off their monthly mortgage payments on a 30-year fixed-rate loan for $200,000 by refinancing." While other rates fell week-to-week, the average one-year Treasury ARM rate rose to 4.53% from 4.49%. However, it is still lower than it was a year ago when it was 5.15%. Average points for the week ending Oct. 8 were as follows: 0.7 for 30- and 15-year FRMs and 0.5 for five-year Treasury hybrids and one-year Treasury ARMs.