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01 June 2012
Freddie Mac reported rates are the lowest since the government-sponsored enterprise began keeping records in 1971. Today's average 30-year rate is even lower than the average 20-year or 25-year rate, which was the typical loan in the 1950s. Data from the National Bureau of Economic Research showed that between July 1950 and February 1951, long-term rates averaged 4.08 percent. This week's average 30-year rate was 3.78 percent. Mortgage rates tend to track the yield on the 10-year Treasury note, which is approximately 1.74 percent and that rate is the lowest level since the Federal Reserve Bank started keeping daily records in 1962. While it’s hard to imagine rates going lower (BUY NOW! REFINANCE NOW!) a WSJ article points out that "Yes, interest rates can go lower".
The average annual interest rates have dropped each year for the last 5 years and are now again lower for 2012!
- Average Interest Rate for YTD 2012 is 3.95%.
- Average Interest Rate for 2011 was 4.45%.
- Average Interest Rate for 2010 was 4.69%.
- Average Interest Rate for 2009 was 5.04%.
- Average Interest Rate for 2008 was 6.03%.
- Average Interest Rate for 2007 was 6.34%.
About the “Primary Mortgage Market Survey® (PMMS®)
Freddie Mac's Primary Mortgage Market Survey® (PMMS®) surveys lenders each week on the rates and points for their most popular 30-year fixed-rate, 15-year fixed-rate, 5/1 hybrid amortizing adjustable-rate, and 1-year amortizing adjustable-rate mortgage products. The survey is based on first-lien prime conventional conforming mortgages with a loan-to-value of 80 percent. In addition, the adjustable-rate mortgage (ARM) products are indexed to U.S. Treasury yields and lenders are asked for the both the initial coupon rate and points as well as the margin on the ARM products. Currently, about 125 lenders are surveyed each week and the mix of lender types – thrifts, credit unions, commercial banks and mortgage lending companies – is roughly proportional to the level of mortgage business that each type commands nationwide. The survey is collected from Monday through Wednesday and the results are posted on Thursdays.
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