Rates Set Record Low in Freddie Survey

The average rate for the 30-year fixed-rate mortgage fell to a record low in the Freddie Mac Primary Mortgage Market Survey for the week ending March 26. In addition, the average rates for 15-year FRMs and five-year hybrid Treasury-indexed adjustable-rate mortgages fell to lows not seen since Freddie began tracking them. "The Federal Reserve's announcement that it intends to purchase Treasury securities over the next six months caused bond yields to drop and mortgage rates followed," said Frank Nothaft, Freddie Mac vice president and chief economist. The average 30-year FRM rate was 4.85%, down from 4.98% the week before and 5.85% the year before; the average 15-year FRM rate was 4.58%, down from 4.61% the week before and 5.34% the year before; and the average five-year Treasury-indexed hybrid rate was 4.96%, down from 4.98% the week before and 5.67% the year before. Freddie has tracked the 30-year rate since 1971, the 15-year rate since 1991 and the five-year rate since 2005. The average rate on one-year Treasury indexed ARMs also fell in the latest week when it was 4.85%, down from 4.91% the week before and 5.24% a year ago. Average points were 0.7 for 30- and 15-year FRMs as well as five-year Treasury-indexed hybrids, and 0.6 for one-year Treasury-indexed ARMs.