Thirty-Year Mortgage Rate Seen at Four-Year Low

The average rate on the 30-year fixed-rate mortgage during the week ended Dec. 11 fell to a low not seen since 2004, according to Freddie Mac. The average 30-year FRM rate was 5.47%, down from 5.53% the week previous and from 6.11% during the same period last year. This is the lowest it has been since March 25, 2004, the government-sponsored enterprise said. "Following the release of the November employment report, which showed the largest monthly decline in jobs since December 1974, bond yields fell slightly this week allowing fixed-rate mortgage rates to ease back a little further," said Frank Nothaft, Freddie Mac vice president and chief economist. The average rate on the 15-year FRM dropped to 5.20% from 5.33% the previous week and from 5.78% a year ago. The average rate on five-year hybrid adjustable rate mortgages rose to 5.82% from 5.77% the week previous but was down from 5.89% a year ago. The average one-year Treasury-indexed ARM rate was 5.09%, up from last week's 5.02% but down from last year's 5.50%. Average points were 0.7 for 30- and 15-year FRMs, 0.6 for five-year hybrids and 0.4 for one-year ARMs.