Home Loan Interest Rates Hover by Historic Lows
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UPDATED: Sep 6, 2012
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Freddie Mac’s weekly interest rate report revealed that home loan interest rates for the four types of primary mortgages either declined or remained steady when compared to last week’s report. All of the reported interest rates continue to hover around their historic low records.
The 30-year fixed-rate mortgage averaged at 3.55 percent this week, while the 15-year fixed-rate averaged at 2.86 percent.
That’s a decline of 0.04 percent for the 30-year home loan, and a 0 percent change in the 15-year.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged at 2.75 percent this week, while the 1-year ARM averaged at 2.61 percent.
The 5-year is down by 0.03 percent from last week and the 1-year is down by 0.01 percent.
“Mortgage rates were little changed over the holiday week amid mixed economic data releases,” said Frank Nothaft, Freddie Mac’s vice president and chief economist, in a release. “Although consumer spending rose 0.4 percent in July, representing the largest gain in five months, the core price index was unchanged, suggesting little threat of inflation.”
Nothaft also cited a study by the University of Michigan which found that consumer confidence picked up slightly in August, which may have contributed to the halt in constant record-breaking low interest rates we saw for nearly two straight months.
Through June and July, home loan interest rates broke their historic low records over ten times. During the week of July 26th, the 30-year fixed interest rate bottomed out at an astonishing 3.49 percent.
Compared to one year ago, the rates of today are down by over a half a percent, as Freddie Mac reported the 30-year rate at 4.09 percent in the beginning of Sept. 2011.