Mortgage Rates Fall for Three Consecutive Weeks

McLean, Va.–The 30-year fixed-rate mortgage (FRM) averaged 5.14 percent with an average 0.7 point for the week ending July 16, 2009, down from last week when it averaged 5.20 percent, according to Freddie Mac’s recently released Primary Mortgage Market Survey (PMMS). Last year at this time, the 30-year FRM averaged 6.26 percent.   The 15-year FRM this week averaged 4.63 percent with an average 0.7 point, down from last week when it averaged 4.69 percent. A year ago at this time, the 15-year FRM averaged 5.78 percent.  This is the third consecutive week that the rate fell. The 30-year FRM averaged 5.20 percent with an average 0.7 point for the week ending July 9, 2009, down from last week when it averaged 5.32 percent. Also for the week ending July 2, 2009, it averaged 5.32 percent with an average 0.7 point, down from the previous week when it averaged 5.42 percent.Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 4.83 percent this week, with an average 0.7 point, up slightly from last week when it averaged 4.82 percent. A year ago, the five-year ARM averaged 5.80 percent. One-year Treasury-indexed ARMs averaged 4.76 percent this week with an average 0.5 point, down from last week when it averaged 4.82 percent. At this time last year, the 1-year ARM averaged 5.10 percent.  “Average fixed-rate mortgage rates were lower than last week and were down 0.4 percent to 0.5 percent from the levels of early June,” says Frank Nothaft, Freddie Mac vice president and chief economist. “For a 30-year fixed-rate mortgage, the rate reduction over the past five weeks translates into a monthly payment saving of $56 on a $200,000 loan.”