The average 30-year FRM last week shattered previous record lows by falling to just 3.67 percent, according to Freddie Mac’s latest Primary Mortgage Market Survey.
Down from last week, when it averaged 3.75 percent the 30-year was 4.49 percent a year ago. This is the sixth consecutive week of record-lows for the survey, and the lowest ratings in the history of Freddie Mac’s record keeping.
- The 15-year FRM averaged 2.94 percent, down from 2.97 percent last week and from 3.68 percent a year ago.
- The five-year ARM averaged 2.84 percent down from 3.28 percent last year.
- One-year Treasury-indexed ARM has changed the least, increasing four bps from last week to 2.75 percent; it was 2.95 percent a year ago.
The historic drop in rates highlight a rather ironic nature of the housing market – bad is, for some consumers, very good. As Frank Nothaft, the vice president and chief economist of Freddie Mac, noted in the survey, weak job growth, downwardly-revised GDP projections and the slowest corporate profits in three-plus years all reflected negatively on the economy, and as a result, interest rates continued to fall. So because of bad economic news, the homebuying process has been immeasurably aided for consumers in the position to buy.