The 30-year fixed rate mortgage fell slightly closer to its all-time low this week, while the average 15-year fixed dipped to a new record low of 2.66 percent, according to Freddie Mac.
The 30-year fixed rate mortgage dipped to 3.37 percent, just a basis point shy of its record low of 3.36 percent.
Home purchase and refinance affordability remain at historic levels just as positive news on the housing market is building.
Construction on single-family homes jumped to an annualized rate of 11 percent in August, the strongest pace since August 2008.
Over the first nine months of the year, single-family starts were 23 percent higher than the same period last year, said Frank Nothaft, vice president and chief economist, Freddie Mac.
Additionally, homebuilder confidence jumped for the sixth consecutive month in October to the highest level since June 2006, according to the National Association of Home Builders/Wells Fargo Housing Market Index.
Here is Freddie Mac’s rundown on mortgage rates:
- 30-year fixed-rate mortgage averaged 3.37 percent, with an average 0.7 point, for the week ending October 18, 2012, down from last week when it averaged 3.39 percent. Last year at this time, the 30-year FRM averaged 4.11 percent.
- 15-year fixed rate averaged 2.66 percent, with an average 0.6 point, down from last week when it averaged 2.70 percent. A year ago at this time, the 15-year FRM averaged 3.38 percent.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.75 percent this week, with an average 0.6 point, up from last week when it averaged 2.73 percent. A year ago, the 5-year ARM averaged 3.01 percent.
- 1-year Treasury-indexed ARM averaged 2.60 percent, with an average 0.4 point, up from last week when it averaged 2.59 percent. last week. At this time last year, the 1-year ARM averaged 2.94 percent.