Mortgage Rates Fall This Week; 30-Year Matches All-Time Low
DOW JONES NEWSWIRES
Mortgage rates fell this week, with the average rate on 30-year, fixed-rate
mortgages dropping to match an all-time low of 4.78%, according to Freddie Mac's
(FRE) weekly survey of mortgage rates.
The rate on 15-year fixed mortgages hit a fresh low since Freddie started
recording that data in 1991.
On Monday, the National Association of Realtors said October sales of existing
homes jumped by 10% as buyers continued to take advantage of a first-time home
buyer tax credit, low prices and low mortgage rates.
Meanwhile, mortgage rates have been pushed lower as Treasury yields fall anew.
There has been a recent surge in demand for short-term government debt,
indications that investors and financial institutions are retreating from
riskier bets.
The 30-year, fixed-rate mortgage averaged 4.78% for the week ended Nov. 25,
down from last week's 4.83% and 5.97% a year earlier. Rates on 15-year mortgages
were 4.29%, down from 4.32% last week and 5.74% a year earlier.
Five-year Treasury-indexed hybrid adjustable-rate mortgages averaged 4.18%,
down from last week's 4.25% and 5.86% a year earlier. It's the lowest for the
five-year ARM since Freddie started tracking the loan in 2005.
One-year Treasury-indexed ARMs were 4.35%, unchanged from last week and down
from 5.18% a year ago.
To obtain the rates, the 30-year mortgage and one-year ARM required payment of
an average 0.7 point, while the rest required an average 0.6 point. A point is
1% of the mortgage amount, charged as prepaid interest.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855; nathan.becker@
dowjones.com;
(END) Dow Jones Newswires
11-25-091034ET
Copyright (c) 2009 Dow Jones & Company, Inc.
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