Fed report finds improvement in housing markets in 10 of 12 districts
After hitting record lows last week, mortgage rates have stayed tanked amid growing concerns that lawmakers won’t reach a compromise to avoid a “fiscal cliff” of automatic tax increases and spending cuts scheduled to take place next year, Freddie Mac said in releasing the results of its weekly Primary Mortgage Market Survey.
Rates on 30-year fixed-rate mortgages averaged 3.32 percent with an average 0.8 point for the week ending Nov. 29, up from 3.31 percent last week but down from 4.00 percent a year ago. Last week’s rate was a new record in Freddie Mac records dating to 1971.
For 15-year fixed-rate loans, rates averaged 2.64 percent with an average 0.6 point, up from 2.63 percent last week but down from 3.30 percent a year ago. Last week’s rate was a record in records dating to 1991.
Rates on five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) loans averaged 2.72 percent with an average 0.6 point, down from 2.74 percent last week and 2.90 percent a year ago. Rates on five-year ARM loans hit a low in records dating to 2005 of 2.69 percent during the week ending July 19.
For one-year Treasury-indexed ARM loans, rates averaged 2.56 percent with an average 0.5 point, unchanged from last week but down from 2.78 percent a year ago. Rates on one-year ARM loans hit a low in records dating to 1984 of 2.55 percent during the week ending Nov. 15.
A separate survey by the Mortgage Bankers Association showed applications for purchase mortgages were up 3 percent during the week ending Nov. 23 compared to the week before. The survey, which included an adjustment for the Thanksgiving holiday, showed purchase loan demand up 8 percent from a year ago.