Credit it to whatever you want: President Obama winning the election, Jay Cutler getting concussed, or Thanksgiving coming around the corner.
The fact of the matter is that the nationwide average for mortgage rates across the country has never been lower according to Freddie Mac’s weekly Primary Mortgage Market Survey.
Never in my lifetime. Never in your lifetime. Never in the existence of the modern mortgage.
Let’s dive into the numbers and see what we can find.
30-year fixed mortgage rates dropped from 3.40% with 0.7 points last week to the new record low of 3.34% with 0.7 points this week. The previous lowest average of 3.36% was set back on October 4, 2012, and the weekly average has flirted with that line for weeks until bursting through it today. Last year at this time, 30-year mortgage rates averaged a flat 4.00%.
15-year fixed mortgage rates also fell to a new record low this week of 2.65% with 0.7 points from last week’s 2.69% with 0.7 points. This breaks the record of 2.66% set back on October 18, 2012. If you run back 12 months, you would see that 15-year fixed mortgage rates averaged a mammoth 3.31%.
5/1-year ARMs ruined the every-mortgage-rate-average-took-a-drop party by jumping to 2.74% with 0.6 points from last week’s 2.73% with 0.6 points, while 1-year ARMs fell to 2.55% with 0.3 points from last week’s 2.59% with 0.4 points.
Last year at this time, 5/1-year ARMs and 1-year ARMs averaged 2.97% and 2.98%, respectively.
I’m dying to know what Frank Nothaft, vice president and chief economist from Freddie Mac, had to say this week. Surely he was screaming like a middle school girl at a One Direction concert, right?
He explained, “Fixed mortgage rates eased this week to record lows on indicators of higher consumer confidence and lower wholesale prices. Consumer sentiment rose in November to the highest reading since July 2007 according to the University of Michigan. Meanwhile, the core producer price index fell 0.2 percent in October.”
Not exactly the statement I was expecting, but it is good enough for me, I suppose.