The interest rate on a 30-year fixed-rate mortgage fell to an average of 3.55% last week according to Freddie Mac. That is identical to last week's average, and well below the year-ago rate of 4.09%. The all-time low of 3.49% was set in July.
A 15-year fixed-rate loan averaged 2.85%, besting the 2.86% rate from a week ago. A year ago the rate stood at 3.30%. The record low rate for a 15-year fixed rate loan is 2.80%.
The interest rate on a Treasury-indexed hybrid 5-year adjustable-rate mortgage loan averaged 2.72%, down from 2.75% last week, and down from 2.99% a year ago.
According to a Freddie Mac executive:
Despite a lackluster August employment report, Treasury bond yields and mortgage rates were little changed this week with the financial markets speculating on further monetary stimulus from the Federal Reserve.
The FOMC has just announced that it will begin purchasing mortgage-backed securities at the rate of $40 billion monthly. We have more coverage here.
Filed under: 24/7 Wall St. Wire, Banking & Finance, Housing