2013 starts off with fixed mortgage rates at historic lows

January 3, 2013


Mortgage rates hit historic lows

Freddie Mac’s first Primary Mortgage Market Survey(R) (PMMS®) of the year shows that fixed mortgage rates continue to hover near their all-time record low, which the mortgage giant says is “helping to keep homebuyer affordability high and aiding the ongoing housing recovery.”

According to Freddie Mac, 30-year fixed-rate mortgage (FRM) averaged 3.34 percent with an average 0.7 point for the week ending January 3, 2013, down from last week when it averaged 3.35 percent, and down from 3.91 percent last year at this time. A 15-year FRM this week averaged 2.64 percent with an average 0.7 point, down from 2.65 percent last week, and 3.23 percent last year.

Additionally, the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.71 percent this week with an average 0.6 point, up from last week when it averaged 2.70 percent and 2.86 percent a year ago. The 1-year Treasury-indexed ARM averaged 2.57 percent this week with an average 0.4 point, up from last week when it averaged 2.56. At this time last year, the 1-year ARM averaged 2.80 percent.

Dr. Frank Nothaft, Vice President and Chief Economist at Freddie Mac said, “Mortgage rates started the year near record lows which should continue to aid the ongoing housing recovery. New home sales rose in November to a two-year high and were up 15.3 percent from the previous November. Similarly, pending sales on existing homes increased for the third month in November to the strongest pace since April 2010.”

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Tara Steele is the News Director at The American Genius, covering entrepreneur, real estate, technology news and everything in between. If you'd like to reach Tara with a question, comment, press release or hot news tip, simply click the link below.

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