Rates Drop to Survey-Record Lows

All three average mortgage rates tracked by Freddie Mac's Primary Mortgage Market Survey fell to survey-record lows for the week ending Nov. 15, according to the government-sponsored enterprise.The average 30-year fixed mortgage rate dropped from 6.11% the previous week to 5.94%, its lowest level since Freddie Mac started tracking it in 1971, and the average 15-year fixed mortgage rate fell from 5.48% to 5.32%, its lowest level since the GSE started tracking it in 1991. Meanwhile, the average rate for one-year Treasury-indexed adjustable-rate mortgages dropped from 4.15% to 4.09%, its lowest level since Freddie began tracking it in 1984. Fees and points averaged 0.6 points for fixed-rate mortgages and 0.7 points for ARMs. "The Fed rate cut and Greenspan's recent remarks that the economy has hit a 'soft spot' had a huge impact on financial markets," said Frank Nothaft, Freddie Mac's chief economist. "Combined with the anticipation that the U.S. could soon be at war with Iraq, market sentiment turned toward the negative, driving mortgage rates to new lows again." A year ago, the average 30-year and 15-year fixed rates were 6.51% and 5.98%, respectively, and the average one-year ARM rate was 5.06%, Freddie Mac said. Freddie Mac can be found on the Web at http://www.freddiemac.com.