FRM Rate Falls Back Below 5% Again

The average rate on a 30-year fixed rate mortgage returned to a point near record lows during the week ending March 19 when it dropped below 5% on the heels of a decline in bond yields, according to Freddie Mac."Long-term mortgages followed bond yields lower," said Freddie's vice president and chief economist Frank Nothaft. The average 30-year FRM rate, at 4.98%, has not been lower since the week ending Jan. 15 when it hit an all-time low of 4.96%. It was down from 5.03% the previous week and 5.87% a year ago. The average 15-year FRM was 4.61%, a low not seen since the week ending June 13, 2003 when it averaged 4.60%. The average 15-year FRM rate was down from 4.64% the previous week and 5.27% the previous year. Five-year Treasury-indexed hybrid adjustable-rate mortgages averaged 4.98%, down from 4.99% the previous week and 5.56% the previous year. One-year Treasury-indexed ARMs averaged 4.91%, up from 4.80% the previous week and 5.15% the previous year. Average points were 0.7 for all aforementioned loan categories.