Thursday, December 01, 2011

Adjustable mortgage rates are at records lows

By Ruth Mantell
WASHINGTON (MarketWatch) -- Adjustable mortgage rates are at records lows, and fixed mortgage rates remained relatively low, Freddie Mac said Thursday. The average rate on the 5-year Treasury-indexed hybrid adjustable-rate mortgage fell to a record low of 2.90% in the week ended Dec. 1 - the data go back to 2005 - from 2.91% in the prior week, the previous record low. A year ago the rate was at 3.49%, according to the buyer of residential mortgages. "The extraordinarily low mortgage rates of the past month may provide a needed spur to housing activity," said Frank Nothaft, Freddie Mac's chief economist, in a statement. To obtain the latest rate, payment of an average 0.6 point was required. A point is 1% of the mortgage amount, charged in prepaid interest. The 1-year Treasury-indexed ARM also decreased to a record low, reaching 2.78% in the latest week, down from 2.79%, the prior record low. These data go back to 1984. Meanwhile the average rate on the 30-year fixed-rate mortgage increased to 4.00% from 3.98%, and the average rate on the 15-year fixed-rate mortgage remained at 3.30%.

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