30-year Mortgage

30-year Mortgage, Mortgage rates were down slightly this past week, approaching, but not quite hitting, the lowest mortgage rates on record.

Adjustable-rate mortgages (ARMs), did reach new record lows. The initial interest rate on a five-year Treasury-indexed ARM dropped to 2.91 percent, Freddie Mac reported. That was lower than last week’s 2.97 percent, and it breaks the previous record low of 2.96 percent for five-year ARMs, set during the week of Oct. 6.

Average rates on a 30-year fixed rate mortgage dipped to 3.98 percent, down from 4 percent. The average rate for the 15-year fixed home loan slipped to 3.30 percent, down from 3.31. Both are just a hair–0.04 percentage points–above their respective all-time lows, according to Freddie Mac, also set on Oct. 6.

30-Year Mortgage

30-Year Mortgage, The average rate on 30-year fixed mortgage fell to 4% this week, nearly equaling the low blow of all time just a month ago. Freddie Mac said Thursday the rate of 30-year loan fell to 4.10% last week. Four weeks ago, fell to 3.94% – the lowest rate ever, according to the National Bureau of Economic Research.

The average mortgage rate 15-year fixed fell to 3.31% from 3.38%. Four weeks ago, also hit a record low of 3.26%. Mortgage rates tend to follow the yield on the benchmark 10-year Treasury, the Fed has been buying to try to force lower rates.

Federal Reserve, Ben Bernanke said on Wednesday that the low rates have failed to encourage increased purchasing or refinancing a home mortgage government officials had expected.  High unemployment and falling wages have become more difficult for many people who qualify for loans. Many Americans do not want to invest money in a home that could lose value over the next three or four years. And most homeowners who can afford to refinance already have.

The number of Americans who bought previously occupied homes fell in September and is on track to match the dismal figures last year – the worst in 13 years.

New home sales rose last month after four consecutive monthly declines. However, the increase was largely because builders cut prices. And followed by a peak shopping season was the worst on records dating back nearly 50 years.

The low rates have caused a modest rise in refinancing, but that benefit may be eroding. Most people who can afford to have closed refinancing rates below 5%.

Rates have been below 5% for all but two weeks in the last year. Just five years ago were closer to 6.5%. Ten years ago, they were above 8%.

The average rate of five-year adjustable loan fell to 2.96% from 3.08%. That success coincides with a record four weeks ago.

The average rate of one-year adjustable loan fell to 2.88% from 2.90%. Last month fell to 2.81%, the lowest on records dating to 1984.

The average rates do not include additional fees known as points, most borrowers must pay to obtain the lowest rates. One point equals 1% of the loan amount.

The average rate on 30-year fixed mortgage fell from 0.8 to 0.7. The average loan rate fixed at 15 years remained at 0.7. The average loan rate adjustable from five years to one year adjustable loan also unchanged at 0.6.

To calculate the average price of mortgage lenders Freddie Mac surveys across the country Monday through Wednesday of each week.