Long-term mortgage rates fell to a new low this week, with a 30-year fixed-rate mortgage averaging 4.71 percent in the week ending Dec. 3, the lowest rate since at least 1971, when Freddie Mac started keeping track.
A year ago, 30-year fixed-rate mortgages averaged 5.53 percent.
For homeowners who can afford a higher monthly payment, 15-year fixed-rate mortgages are even lower, averaging 4.27 percent, also a new low.
“Interest rates for 30-year and 15-year fixed rate mortgages fell for the fifth consecutive week to an all-time record low, while the average rate on a 5-year ARM hovered near its record set in the previous week,” says Freddie Mac (NYSE: FRE) chief economist Frank Nothaft. “In addition, interest rates on 30-year and 15-year fixed mortgages thus far in 2009 averaged one percentage point below their respective average in 2008.”
New Mexico mortgage rates for a 15-year fixed loan is 4.25 percent, while a 30-year fixed loan is 4.63 percent, according to MortgageLoan.com statistics.
Low rates continue to contribute to a rebound in the housing market. Total new and existing home sales in October were 36 percent higher than their January low, according to the National Association of Realtors. Pending sales of existing homes rose for the ninth straight month in October, representing the longest consecutive gain since the NAR began record keeping in 2001.
Its housing affordability index also shows seven of those months were the most affordable in at least 38 years.
New Mexico Business Weekly
Jeff Clabaugh of the Washington Business Journal, an affiliated publication, compiled