15-Year fixed Mortgage Rates Hit Record Low

By Kyle Chezum Updated on 9/25/2013

Fixed mortgage rates approached record lows last week.  The one rate that actually broke a record was the 15-year Fixed Rate Mortgage which dropped to a new all time low of 3.13% according to Freddie Mac.

Freddie Mac, the GSE (government-sponsored enterprise) last week released its primary mortgage survey which showed the most popular loan program, the 30-year Fixed Rate Mortgage averaging 3.88%, down from last week's average of 3.90%. This very same mortgage program had a rate of 4.88% last year.

As mentioned earlier, the 15-year Fixed Rate Mortgage reached 3.13%, down from 3.17% a week earlier and 4.15% last year. The 5-year ARM (Adjustable Rate Mortgage ), Treasury-indexed hybrid averaged 2.81% which was also down from 2.83% in the earlier week and 3.73% last year. The last program to round out the rate averages is the 1 year ARM which was the only rate moving up 0.01%, to 2.73% from 2.72%.

These historically low mortgage rates and the declining prices in the real estate home market together have created an environment for the typical family to better be able to purchase a median-priced home.  The other positive factor coming up in March of 2012 is the HARP 2 Refinance Program which will make it easier for the underwater homeowners to refinance their mortgages.

As mentioned in an article yesterday on Lender411.com, home price index fell for the sixth consecutive month in January of 2012 to the lowest level since January 2003. This has caused a very high level of affordability for homes.