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Freddie Mac: Mortgage rates edge lower; 30-year average at 3.37%

October 18, 2012|By E. Scott Reckard
  • Freddie Mac, based in this McLean, Va., building, says mortgage rates remain near record lows.
Freddie Mac, based in this McLean, Va., building, says mortgage rates remain… (Freddie Mac )

Mortgage rates hovered near their all-time lows this week, with the average 30-year fixed loan at 3.37%, down from 3.39% last week, Freddie Mac said in its latest survey of what lenders are offering to solid borrowers.

The record low of 3.36% was set two weeks ago.

Freddie said the average offering rate for a 15-year home loan was 2.66%, a new record low. Borrowers would have paid an average 0.7% of the loan amount in upfront lender fees and points for the 30-year loan and 0.6% for the 15-year mortgage.

The initial rates for adjustable-rate mortgages rose slightly.

Observations on the recovering housing markets from Freddie Mac economist Frank Nothaft:

"Construction on single-family homes jumped to an annualized rate of 11% in August, the strongest pace since August 2008. Over the first nine months of the year, single-family starts were 23% higher than the same period last year. Moreover, homebuilder confidence rose for the sixth consecutive month in October to the highest level since June 2006.”

Freddie Mac asks lenders each Monday through Wednesday about the terms they are offering on popular types of loans. Solid borrowers who shop around can often do somewhat better, and many pay additional upfront points to lower the rate. Third-party costs such as appraisals and title insurance are not included in the survey.

US 30 Year Mortgage Rate Chart

US 30 Year Mortgage Rate data by YCharts

ALSO:

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Discussion: the rebounding housing market

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