Complain about a product or service

Mortgage Rates Plunge

Fannie, Freddie bailout sends fixed rates tumbling

September 12, 2008

According to the Freddie Mac Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 5.93 percent with an average 0.7 point for the week ending September 11, 2008, compared with last week's average of 6.35 percent. Last year at this time, the 30-year FRM averaged 6.31 percent.

The average for the 15-year FRM--often used in refinancings--dropped to 5.54 percent with an average 0.7 point, from last week when it averaged 5.90 percent. The 15-year FRM averaged 5.97 percent a year ago.

Turning to ARMs, the 5-year Treasury-indexed hybrid adjustable-rate mortgages averaged 5.87 percent, with an average 0.7 point. Last week, the average was 5.97 percent and a year ago, the 5-year ARM averaged 6.17 percent.

One-year Treasury-indexed ARMs rose this week to an average of 5.21 percent this week with an average 0.6 point, from last week's average of 5.15 percent. At this time last year, the 1-year ARM averaged 5.66 percent.

"Interest rates for 30-year fixed-rate mortgages are down almost 0.6 percentage points over the past 4 weeks, which will help to spur home purchases and loan refinancing in coming weeks," said Frank Nothaft, Freddie Mac vice president and chief economist. "This means that the monthly principal and interest payment on a new $200,000 loan is over $76 lower than a month ago.

"Lower rates have occurred at an opportune time, as the July pending sales data from the National Association of Realtors were off 3.2 percent from June," said Nothaft.

The Mortgage Bankers Association reported that refinance applications are up 18 percent over the past 3 weeks through September 5th, indicating that refinance activity has already begun to pick up.

Report Your Experience
If you've had a bad experience -- or a good one -- with a consumer product or service, we'd like to hear about it. All complaints are reviewed by class action attorneys and are considered for publication on our site. Knowledge is power! Help spread the word. File your consumer report now.

Back to the top |