It has been a record-shattering year for mortgage rates and the new year may bring fresh lows as the 30-year fixed-rate edged down to 3.35 percent this week, just four basis points from its record low of 3.31 set in November.
Freddie Mac’s weekly update also shows that the 15-year fixed-rated remained unchanged at 2.65 percent.
The 30-year fixed-rate mortgage averaged 3.66 percent for 2012, the lowest annual average in at least 65 years, said Frank Nothaft, vice president and chief economist, Freddie Mac.
Rates on 30-year fixed mortgages were nearly 0.6 percentage points below that of the beginning of the year, which translates into an interest payment savings of nearly $98,600 over the life of a $200,000 loan.
A homeowner could save an additional $138,400 in interest payments by opting for a 15-year fixed mortgage at today’s rates, Nothaft said.
Freddie Mac projects that long-term mortgage rates will remain near their record lows for the first half of 2013, then rise gradually in the second half of the year – but remaining below 4 percent.
Here’s Freddie Mac’s overview of rates for the final week of 2012:
- 30-year fixed-rate mortgage averaged 3.35 percen,t with an average 0.7 point, for the week ending December 27, 2012, down from last week when it averaged 3.37 percent. Last year at this time, the 30-year FRM averaged 3.95 percent.
- 15-year fixed-rate this week averaged 2.65 percent, with an average 0.7 point, unchanged from last week when it averaged 2.65 percent. A year ago at this time, the 15-year FRM averaged 3.24 percent.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.70 percent this week, with an average 0.7 point, down from last week when it averaged 2.71 percent. A year ago, the 5-year ARM averaged 2.88 percent.
- 1-year Treasury-indexed ARM averaged 2.56 percent this week, with an average 0.5 point, up from last week when it averaged 2.52. At this time last year, the 1-year ARM averaged 2.78 percent.