According to Freddie Mac's most recent Primary Mortgage Market Survey, some home loan interest rates have fallen to their lowest level in 50 years, while others have reached their lowest average ever.
For the week ending August 18, average interest rates for 30-year fixed-rate loans fell to 4.15 percent, which passed the previous low of 4.17 percent set during the week of November 11, 2010. The rate is down significantly from last week's average of 4.32 percent and 4.42 percent from same time last year. The average rate for 15-year FRMs settled at 3.36 percent, which is down from 3.50 percent last week and 3.90 percent the previous year.
"The Federal Reserve's policy statement last week and ongoing market concerns over the European debt market carried momentum into this week allowing all mortgage products in our survey to reach all-time record lows," said Freddie Mac vice president and chief economist Frank Nothaft. "For instance, 30-year fixed mortgage rates are now the lowest in over 50 years."
The average rate for five-year adjustable-rate loans fell to 3.08 percent, down from 3.13 percent last week and 3.56 percent last year. The rate for one-year ARMs also declined, averaging 2.86 percent, which was lower than last week's 2.89 percent average and last year's 3.53 percent.
