Big Savings for Buyers: Rates Reach New Record-Lows

September 16, 2011

For the second straight week, mortgage rates reached another milestone, with 30-year and 15-year fixed-rate mortgages hitting record lows again, Freddie Mac reports in its weekly mortgage market survey. 

"Continued investor concerns over the state of the European debt markets kept U.S. Treasury bond yields low and allowed mortgage rates to ease once more this week,” says Frank Nothaft, Freddie Mac’s chief economist.

For example, home owners who refinanced at today’s 30-year fixed-mortgage rate could trim nearly $1,715 a year in interest payments on a $200,000 loan, Nothaft says.

Here’s a closer look at rates for the week ending Sept. 15.

  • 30-year fixed-rate mortgages: averaged 4.09 percent this week, down from last week’s previous record of 4.12 percent. Last year at this time, 30-year rates averaged 4.37 percent. 
  • 15-year fixed-rate mortgages: averaged 3.30 percent, dropping from last week’s record low of 3.33 percent. Last year at this time, 15-year rates averaged 3.82 percent. 
  • 5-year adjustable-rate mortgages: averaged 2.99 percent this week, up slightly from last week’s 2.96 percent average. A year ago at this time, the 5-year ARM averaged 3.55 percent. 
  • 1-year ARMs: averaged 2.81 percent, down from last week’s 2.84 percent average. A year ago, the 1-year ARM averaged 3.40 percent. 

By REALTOR® Magazine Daily News

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