Record-breaking Lows for Fixed Mortgage Rates ContinuePR Web
Orlando, FL (PRWEB) October 10, 2012
REMI's Mr. Nergarden issued his statement on the record-breaking low interest rates on fixed-rate mortgages announced by Freddie Mac last week, saying that it would help home buyers as low rates make homes much more affordable.
The Freddie Mac Primary Mortgage Market Survey, a weekly mortgage report issued by Freddie Mac, showed last week that interest rates on both 30-year and 15-year mortgages had fallen to an all-time low for the week of October 4. The 30-year fixed mortgage rate dropped to 3.36 percent from 3.4 percent the previous week, and from 3.94 percent a year ago. Meanwhile, 15-year fixed-rate mortgages averaged 2.69 percent, which showed a weekly drop from 2.73 percent and a yearly drop of 3.26 percent. Buyers of real estate advertising have enjoyed low interest rates for the last few years as the housing sector recovers from the crisis of 2008, but this drop in interest rates is unprecedented.
For the first time since 2009, in fact, 15-year fixed-rate mortgages are selling at a lower interest rate than 5-year adjustable-rate mortgages. Beach front vacation rentals have historically been financed by either fixed-rate mortgages, in which the interest rate stays constant for the life of the mortgage; or adjustable-rate mortgages (ARMs), in which the interest rate can change based on the credit market or other criteria, usually determined by the lender. While rates for fixed-rate mortgages are on a sharp decline, the rates for adjustable-rate mortgages are rising slightly. Last weeks numbers showed interest rates at 2.72 percent for 5-year ARMs, and 2.57 percent for 1-year ARMs. While this represents a small weekly decrease for 1-year ARMs (down from 2.6 percent), it also shows a marginal increase for 5-year ARMs from 2.71. However, both types of ARM are down considerably from last year, when interest rates were averaging 2.95 percent.
While there are reasons for concern in this news, including indicators of slowing economic growth and low home sales, prospective home buyers can, for now, enjoy historically low rates to finance the purchase of their own homes.
Tobias Nergarden released a statement following the publication of last weeks Freddie Mac Primary Mortgage Market Survey. The weekly-administered survey showed record-low interest rates for the second straight week on fixed-rate mortgages, both 15-year and 30-year. Adjustable-rate mortgages also saw a decline in interest rates from last year.
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