Federal home mortgage provider Freddie Mac came out with its weekly mortgage rate report this morning, showing no change from last week in the cost of 15- and 30-year fixed-rate mortgages, which average 2.77% and 3.53%, respectively.
Both numbers are within reach of their all-time lows seen in November and December of last year, when the rate on a 30-year fixed-rate mortgage averaged just 3.35% while a 15-year fixed-rate mortgage went for 2.66%.
In the most recent report, one-year ARMs clocked in at 2.61%, up from 2.53% the previous week, while 5/1 ARMs tallied at 2.64%, up from 2.63% the previous week.
Mortgages have become more affordable than they were just a year ago, when for the week ended Feb. 16, 2012, 30-year mortgages were 34 basis points higher than they are now, while 15-year mortgages were 39 basis points above current levels. Today's low rates bode well for a recovering housing market, as well as for current homeowners looking to refinance their existing mortgage.
Frank Nothaft, vice president and chief economist at Freddie Mac, was quoted in a statement as saying, "Mortgage rates remain near record lows and continue to support housing demand, translating into a pick-up in home prices in most markets."