Mortgage Rates Average 4.94% in Week Ending October 1

Mortgage interestrnrates are flirting with record low territory again according to the results ofrnFreddie Mac's Primary Mortgage Market Survey.

During the weekrnended October 1 the 30-year fixed rate mortgage (FRM) averaged 4.94 percentrnwith 0.7 point compared to the week before when the average was 5.04 with 0.6rnpoint.  The 30-year fixed was last atrnthis level during the week ended May 28, 2009 when it averaged 4.91 percent.

The 15-year FRMrnaveraged 4.36 percent, ten basis points lower than the week endedrnSeptember  24.  Fees and points were unchanged at an averagernof 0.6 point.  This is yet another newrnlow for the 15-year which Freddie Mac first tracked in 1991.

The five-yearrnTreasury-indexed hybrid adjustable rate mortgage (ARM) had an average rate ofrn4.42 percent with 0.6 point.  Last weekrnthe rate was 4.51 percent with 0.5 point. rnThis is the lowest rate reached by the five-year hybrid all year.

One-yearrnTreasury-indexed ARMs also hit a 2009 low with an average rate of 4.49 percentrnwith 0.5 point, down from 4.52 percent also with 0.5 point. 

“Low mortgagernrates are helping to stabilize home sales,” said Frank Nothaft, FreddiernMac vice president and chief economist. rn”New home sales in August rose to the highest annualized pace sincernSeptember 2008 and the inventory of unsold houses fell to the lowest levelrnsince February 1983.

Although existing home sales fell somewhatrnin August, it was still the second strongest showing in 23 months.  Furthermore, house prices increased for thernsecond month in a row in July, after adjusting for seasonality, based on the 20-city composite S&P/Case-Shiller Home Price Index®.  Moreover, the increases were more broad-basedrnin July with house prices rising in 17 of these metropolitan areas, compared torn16 in June.

Yields for FanniernMae mortgages during the week ended September 25 were released earlier in thernweek and were mixed.  The 30-yearrnconventional FRM had an average yield of 4.70 percent, up from 4.68 a weekrnearlier.  The 15-year FRM and governmentrnguaranteed loans were both unchanged; the 15-year at 4.07 percent and thernFHA/VA mortgages at 5.28 percent.  Thernone year ARM was down slightly from 2.95 to 2.91 percent.

All Fannie Maernyields are reported net of servicing fees.

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