The 30-year fixed rate mortgage averaged 4.75 percent this week, up slightly from last week’s 4.72 percent – still holding at near its record low, according to Freddie Mac’s market survey update.
Freddie Mac’s all-time low for the long-term rate was set Dec. 3, 2009 at 4.71. The survey has been tracking the 30-year fixed rate since 1971. A year ago, the 30-year rate was at 5.38 percent.
After four consecutive weeks of record lows, the 15-year fixed rate mortgage backed off a bit from its pace, increasing to 4.20 percent from its 4.17 average last week.
A new low was set by the 5-year Treasury-indexed hybrid ARM at 3.89 percent this week, down from 3.92 percent the previous week. Freddie Mac began tracking the 5-year ARM since January 2005.
The 1-year Treasury-indexed ARM averaged 3.82 percent this week, down from last week when it averaged 3.91 percent. At this time last year, the 1-year ARM averaged 4.95 percent
Despite historically low rates, the expiration of homebuyer tax credits on April 30 has led to a slump in the housing market, including a big drop in new construction.
Starts on single-family homes fell 17 percent to an annualized pace of 468,000 units in May, down from April’s 20-month high. Permits on one-unit homes fell to the slowest pace since May of last year.
“Nonetheless, household balance sheets have been improving over the past four quarters,” said Frank Nothaft, Freddie Mac vice president and chief economist. “In aggregate, households gained $6.3 trillion in net worth in the first quarter from a year ago, according to the Federal Reserve. In addition, homeowners have regained $1.1 trillion in home equity over the same time period.”
