Fixed Mortgage Rates Lowest Level In Nearly 60 Years

So what was happening in April 1951, the last time that 30-year, fixed-rate mortgages were this low?  Harry Truman was in office — 12 presidents ago!  All in all, it took nearly 60 years for rock-bottom mortgage rates to come full circle, but here we are.

The Freddie Mac Primary Mortgage Market Survey reported the average rate for a 30-year, fixed-rate mortgage was 4.19% with an average 0.8 origination point for the week ending Oct. 14, down from last week’s average of 4.27%. A year ago the average was 4.92%. This is the lowest rate the survey has recorded since its inception in 1971. Mortgage rates were last at this level in April 1951, according to Freddie Mac. 

Rates for 15-year, FRMs are falling steeply, setting a new low for Freddie Mac. The GSE said the rate was down to 3.62% with an average origination point of 0.8. The rate for a 15-year FRM was 4.37% a year earlier.  Further, Freddie Mac commented that the September employment report held no big surprises to the financial market, allowing long-term bond yields and fixed mortgage rates to continue easing.

Bankrate reported the average rate for a 5-year, ARM fell last week to 3.62% from 3.64% previously. The one-year Treasury-indexed ARM averaged 3.43% with an average 0.7 point up slightly from 3.4%. At this time last year, the one-year ARM averaged 4.6%.

Coincidentally, Seattle-based Dupre + Scott Apartment Advisors’ latest report predicts that based on historic rents and incomes over the last 30 years, Puget Sound-area rents could climb almost 25 percent by 2015 and 50 percent by 2020.  They also discovered that while rent rates fell during the last two recessions, it wasn’t by that much.  AND, when the economy rebounded, so did rent rates.  Add historically low interest rates to low apartment construction levels forecasted for 2011 and 2012 and  we’re telling you, the time is ripe for buying!  Contact us at this Stroupe Group link and let’s talk some more.