By KEVIN KINGSBURY, The Wall Street Journal | Real Estate
WASHINGTON—Average mortgage rates hit another record low even as Treasurys sold off, according to Freddie Mac’s weekly survey of mortgage rates.
Mortgage rates have been slumping for months as investors buy Treasurys—pushing down their yields—amid U.S. economic uncertainty. Some of the price gains on Treasurys were lost in recent days after the 10-year note last week retreated from levels last seen in early 2009. Yields, which move inversely to prices, are generally tracked by mortgage rates.
But the 30-year fixed-rate mortgage averaged 4.32% for the week ended Thursday, down from the prior week’s 4.36% average and 5.08% a year earlier. It has set or matched a record low for 11 weeks in a row; Freddie started keeping track of such rates in 1971.
Rates on 15-year fixed-rate mortgages were 3.83%, a new low and down from 3.86% and 4.54%, respectively. Five-year Treasury-indexed hybrid adjustable-rate mortgages were 3.54%, compared with 3.56% a week earlier and 4.59% last year. That loan type hasn’t had such a low average rate since Freddie started tracking it in 2005.
One-year Treasury-indexed ARMs were at 3.50%, down from 3.52% and 4.62%, respectively.
To obtain the rates, the 30- and one-year required payment of an average 0.7 point, with the 15- and 5-year having an average 0.6 point. A point is 1% of the mortgage amount, charged as prepaid interest.
Tags: 30-year fixed-rate, ARMs, Freddie Mac, MBS, Mortgage Rates
