According to Freddie Mac’s latest Primary Mortgage Market Survey, 30-year fixed-rate mortgage rates averaged 3.34 percent (with 0.7 points) last week versus 3.91 percent a year ago, down from 3.35 percent at the end of 2012 and within a few basis points of an all-time low.
The average 15-year fixed mortgage rate dropped to 2.64 percent last week versus 3.23 percent a year ago, down from 2.65 percent at the end of 2012.
At the same time, the price of Fannie Mae-guaranteed securities, which lenders use to price loans, “tumbled last week to the lowest since Sept. 12, the day before the Federal Reserve announced plans to add $40 billion of mortgage debt to its balance sheet each month. The drop, as lawmakers struck a budget deal and the central bank signaled it may conclude the open-ended bond-buying program this year, could lead to further increases in homeowner borrowing costs from the record lows set in December.”
∙ Mortgage Rates Start the New Year Near All-Time Record Lows [Freddie Mac]
∙ Cheap Money Era That Saved U.S. Housing Seen Bottoming [Bloomberg]