Don’t know if you missed it or not, but Freddie Mac released the results of its Primary Mortgage Market Survey® in which it stated that the 30-year fixed-rate mortgage averaged 5.09 percent for the week ending January 7, 2010, down from last week when it averaged 5.14 percent. We are finally seeing these low(er) rates catch up with themselves year over year as last year at this time, the 30-year averaged 5.01 percent.
The 15-year note is still just about as low as ever as this week it averaged 4.50 percent down from last week when it averaged 4.54 percent. A year ago at this time, the 15-year note averaged 4.62 percent.
“Mortgage rates eased slightly this week after rising consecutively through December,” said Frank Nothaft, Freddie Mac vice president and chief economist. “Current interest rates for fixed-rate mortgages are just about at their annual average for 2009, while ARM rates are considerably below their averages for last year.”
“As the economy strengthens further and the Federal Reserve (Fed) decides to raise its overnight target rate, ARM rates will follow suit because they are typically tied to shorter-term interest rates. However, the federal funds futures market does not anticipate any Fed action until the second half of 2010.”
