Real Estate & Area News

Mortgage Rates Hit Lowest Levels in 20 Months

US mortgage insurer Freddie Mac reported Thursday that mortgage rates continued to dsecline this week, hitting their lowest level in some 20 months. According to the report, the average rate for a 30-year, fixed-rate mortgage this week was 3.59 percent and the average for a 15-year fixed loan was 2.92 percent. That compares with averages of 3.66 percent for a 30-year loan and 2.98 percent for the 15-year. The last time the 30-year average dipped below 3.6 percent was late May, 2013, and both rates have fallen about a half of a percentage point over the past year.

Fixed mortgages weren't the only home loans for which interest rates dropped this week, as the average for a 5-year, adjustable-rate mortgage, or ARM, fell from 2.86 percent to 2.82. The average for a one-year ARM, meanwhile, actually edged up this week, from 2.38 percent to 2.39. To calculate weekly averages, Freddie Mac surveys conforming lenders around the nation from Monday to Wednesday each week, releasing its report every Thursday.

February 6, 2015