Mortgage rates have reached record lows, according to Freddie Mac.
The average rate on the 30-year fixed-rate mortgage dropped to a record low of 3.89% in the week ended January 12, compared with 3.91% in the prior week, according to Freddie Mac.
These data date back to 1971.
The 30-year rate was at 4.71% a year ago.
Frank Nothaft, Freddie’s chief economist, stated "Although the economy added 1.6 million jobs in 2011, which was the most since 2006, the unemployment rate remained historically elevated."
In order to obtain the latest rate, payment of an average 0.7 point was required.
1% of the mortgage amount is a point, charged in prepaid interest.
The 15-year fixed-rate mortgage decreased to a record low of 3.16% in the latest week from 3.23% in the prior week.
These data date back to 1991.
The average rate on the 5-year Treasury-indexed hybrid adjustable-rate mortgage slipped to a record low of 2.82% from 2.86%.
These data date back to 2005.
The 1-year Treasury-indexed ARM dropped to a record low of 2.76% from 2.80%.
These data date back to 1984.
Source: marketwatch.com