Freddi Mac's latest survy on 30-year fixed-rate mortgages fell below 5% this week. This is the first time since the end of May, according to Freddie Mac, and closing in on the all-time low set in April.
The current mortgage rates for the 30-year fixed remained steady, with an average of 4.94 percent and 0.7 points for the week ending Sept. 24th. Last week the same mortgage was at 5.04 percent with 0.6 points. That little 0.1 percent rise in points can be significant, so don't ignore it. Last year at this time, the 30-year fixed rate mortgage averaged 6.10 percent, with 0.6 points.
The mortgage rate hasn't been below 5 percent since the week ending May 28, when it averaged 4.91 percent. The April low was 4.78 percent.
The 15-year fixed mortgage rates averaged 4.36 percent with an average 0.6 points. This is down from last week when the same mortgage rate averaged 4.46 percent with 0.6 points, and the lowest since Freddie Mac began tracking rates in 1991. A year ago at this time, the 15-year fixed rate mortgage averaged 5.78 percent, with 0.6 points.
Five-year adjustable-rate mortgages (ARMs) averaged 4.42 percent and 0.6 points. Last week the same mortgage rates were at 4.51 percent and 0.5 points. A year ago, the 5-year ARM averaged 6.0 percent, with 0.6 points.
One-year Treasury-indexed ARMs averaged 4.49 percent this week with 0.5 points. Last week it averaged 4.52 percent and 0.6 points. At this time last year, the 1-year ARM mortgage rate averaged 5.12 percent, with 0.5 points.
For those not aware, points are pre-paid interest which is paid at the time the mortgage is taken out. Besides watching mortgage interest rates, consumers would do well to watch points as well. A 0.1 percent drop (or rise) in points can be significant when applied against the price of a house.
Written by Michael Santo
Exclusively for HULIQ.com
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