Rates Stay Near Record Lows; Get Them While You Can!

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For the first week of March, no news is good news in the Primary Mortgage Market Survey. Reports are showing that fixed rates have barely budged at all and adjustable rates have only moved a smidge. Now I’m not one to peer pressure, or really force my lazy self to do anything for that matter, but if you were looking for a time to capitalize on cheap mortgage rates, there is no time like the present. Just like last week, these mortgage rates are nearing record lows that haven’t been seen in 65 years! We’re talking mortgage rates that haven’t been seen in over half a century; as rare as a unicorn with a chupacabra riding on its back. In case you’re wondering, I’ve never been that good at peer pressuring anyone, but that doesn’t change the fact that these rates need to be capitalized on while they’re around.

Enough of my mortgage peddling though, here are the rates for this week:

30-year fixed-rate mortgage averaged 3.52 percent with an average 0.7 point for the week. This is up from last week when it averaged 3.51 percent. Last year at this time, the 30-year FRM averaged 3.88 percent.

15-year FRM this week averaged 2.76 percent with an average 0.7 point, the same as last week. A year ago this time, the 15-year averaged 3.13 percent.

The 5-year ARM averaged 2.63 percent this week with an average 0.5 point, up from last week’s average of 2.61 percent. Last year, the 5-year ARM averaged 2.81 percent. 1-year ARMs also averaged 2.63 percent this week, but with an average point of 0.3. This is down from last week when it averaged 2.64 percent. Last year at this time a 1-year ARM averaged 2.73 percent.

With a more in depth look into how this whole system ticks, we go to vice president and chief economist of Freddie Mac, Frank Nothaft:

“With gross domestic product growing only 0.1 percent in the fourth quarter of 2012, inflation remains at bay and consequently mortgage rates low. In fact, the price index of personal consumption expenditures rose only 0.1 percent in January which was below the market consensus forecast. Moreover, these low mortgage rates are helping to revive the housing market. For instance the CoreLogic^® home price index rose 9.7 percent between January 2012 and 2013, marking the largest annual increase since April 2006.”