Need one more reason to buy a home in today’s market? Well the average rate on fixed mortgages fell once again to an all-time low of 3.40 percent. According to the Denver Post, “The decline suggests the Federal Reserve’s stimulus efforts may be having an impact on mortgage rates.” Frank Nothaft, vice president and chief economist of Freddie Mac said, “Fixed mortgage rates continued to decline this week, largely due to the Federal Reserve’s purchases of mortgage securities, and should support an already improving housing market.” The Federal Reserve announced last month that it was going to spend $40 billion a month to buy mortgage-backed securities.
PRNewswire Reports the following:
- 30-year fixed-rate mortgage (FRM) averaged 3.40 percent with an average 0.6 point for the week ending September 27, 2012, down from last week when it averaged 3.49 percent. Last year at this time, the 30-year FRM averaged 4.01 percent.
- 15-year FRM this week averaged 2.73 percent with an average 0.6 point, down from last week when it averaged 2.77 percent. A year ago at this time, the 15-year FRM averaged 3.28 percent.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.71 percent this week with an average 0.6 point, down from last week when it averaged 2.76 percent. A year ago, the 5-year ARM averaged 3.02 percent.
- 1-year Treasury-indexed ARM averaged 2.60 percent this week with an average 0.4 point, down from last week when it averaged 2.61 percent. last week. At this time last year, the 1-year ARM averaged 2.83 percent.
If you are looking to buy a home in the Denver area give Ann Meadows a call at 888-860-1931.