Freddie Survey Finds Some Rates at Record Lows

The average rates for 15-year fixed-rate and five-year Treasury-indexed hybrid adjustable-rate mortgages have fallen to record lows and the average 30-year rate has slipped below 5%, according to the most recent Freddie Mac weekly Primary Mortgage Market Survey. The falling 10-year Treasury yield has put downward pressure on long-term rates in the past week. Federal Treasury purchases that have played a role in keeping yields low are slated to end in October and federal agency mortgage-backed securities purchases that play an even greater role in lowering primary market mortgage rates are slated to be phased out in the first quarter of next year. But the Fed has said it may keep short-term rates low for some time, which could keep ARM rates low. Freddie Mac said average rates in the most recent week were as follows: the 30-year dropped to 4.94% from 5.04% the previous week and from 6.10% a year ago, the 15-year fell to 4.36% from 4.46% the previous week and 5.78% a year ago, the five-year slid to 4.42% from 4.51% the previous week and 6% a year ago, and the one-year Treasury ARM declined to 4.49% from 4.52% the previous week and 5.12% a year ago. Average points were 0.7 for 30-year FRMs, 0.6 for 15-year FRMs and five-year hybrids, and 0.5 for one-year ARMs. The 15-year and five-year rates are the lowest they have been since Freddie began tracking them.