The clock struck 10:00 AM EDT this morning and I jumped over to Freddie Mac’s site to see what this week’s Primary Mortgage Market Survey had to say.
After refreshing the site feverishly for a couple minutes because I’m a geek like that, I took a look at the numbers.
I thought I was hallucinating by looking at how crazy low the numbers were, so I had to rub my eyes to make sure I wasn’t seeing things.
For clarification purposes, I was not hallucinating.
Let me tell you something – the national average for mortgage rates have never been this low in my life or your life.
30-year fixed-rate mortgages fell to another new record low of 3.49% with 0.7 from last week’s 3.53% with 0.7 points. This marks the fifth week in a row that 30-year fixed-rate mortgages have dropped and is down a full percentage point from the average last year at this time of 4.55%.
15-year fixed-rate mortgages also set a new record low this week after falling to 2.80% with 0.7 points from last week’s 2.83% with 0.6 points. 15-year fixed-rate mortgages have averaged below 3.00% for nine weeks in a row now and are considerably lower than the 3.66% mark set last year at this time.
ARMs inched upward slightly this week, as 5/1-year ARMs jumped from 2.69% with 0.6 points last week to 2.74% with 0.6 points this week, and 1-year ARMs climbing to 2.71% with 0.5 points from last week’s 2.69% with 0.4 points.
Last year at this time, 5/1-year ARMs and 1-year ARMs averaged 3.25% and 2.95%, respectively.
Frank “The Man, The Myth, The Legend” Nothaft, vice president and chief economist from Freddie Mac, chimed in with some stellar insight as always.
He explained, “Market concerns over the strength of the economic recovery brought long-term Treasury yields to new lows this week allowing fixed mortgage rates to reach record levels. The Conference Board Leading Economic Index showed the largest monthly decline in June since September 2011. Existing home sales fell to 4.36 million homes (annualized) in June and represented the slowest pace since October 2011. Similarly, new home sales fell in June to their lowest level since January of this year.”
Now, go back and re-read that and pretend that Bane from the “Dark Knight Rises” dictated that to you. Maybe you won’t find it as funny as I did, but I got a good kick out of it.
After you’re done with that, give us a call so we can help lock you into a mortgage rate lower than you probably ever imagined before it’s too late!