Mortgage rates improve again: 30-year fixed at 60-year deplete

New turn downs on mortgage rates for a third consecutive week as investor demand for mortgage-backed securities that fund most home loans maintains to be more than sufficient to satisfy demand for mortgages.

30-year rates on fixed rate mortgages averaged 4.19 percent with 0.8 point for the week ending Oct. 14, down from 4.27 percent last week and 4.92% last year, according to Freddie Mac on weekly Primary Mortgage Market Survey.

Freddie Mac’s records low was dated way back 1971. The rates haven’t been dropped since April 1951 based to another set of data based on FHA rates that goes back to 1948.

Rates for 15- year fixed rate mortgages averaged 3.62 % with an average 0.7 point, downhill from 3.72% last week and 4.37% last year which was the new low in Freddie Mac records dating to 1991.

Rates for 5-year Treasury-indexed hybrid adjustable-rate mortgage(ARM) loans averaged 3.47% with an average 0.6 point, unmoved from a week ago but down from 4.83% a year ago. Rates on 5-year ARM loans have never been lower since Freddie Mac began tracking them in 2005.

“September’s employment reports thought no big surprises to financial markets, permit ting long-term bond yields and fixed mortgage rates to continue to improve, according to Chief Economist Frank Nothaft of Freddie Mac. As a result, both 30-year and 15-year fixed mortgage rates hit all-time record drops for the third consecutive week.

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