(Australia-NewsWire.Com, November 15, 2012 ) Victoria, Australia- This past week, mortgage-backed securities that fund the majority of home loans continued to look like a safe bet to investors, with fixed-rate mortgage numbers down from last year’s figures.
Freddie Mac released the results of its latest Primary Mortgage Market Survey. These results show that the rates on 30-year, fixed-rate mortgages averaged about 3.39%. Rates averaged around 0.7 point for the week ending Nov. 1, which is down from 3.41% in the previous week.
Overall, these figures are down about 4.00% from a year ago. According to Freddie Mac, rates for 30-year fixed-rate loans hit an all-time low in 1971, with 3.36% fixed-rate mortgage during the week ending October 4th.
For 15-year fixed-rate loans, rates averaged around 2.70%. This figure averaged 0.7 point, which is down from 2.72% last week. Overall, these figures are down from 3.31% a year ago. Freddie Mac also stated that rates for 15-year fixed-rate loans reached hit an all-time low in 1991, at 2.66% during the week ending October 18th.
The rates on 5-year, Treasury-indexed hybrid adjustable-rate mortgage (ARM) loans averaged around 2.74%, with an average 0.6 point. This figure is also down from 2.75% last week, and overall, 2.96% from a year ago.
Freddie Mac’s records show that rates on five-year ARM loans hit a low in 2005, with 2.69% ARM loans results during the week ending July 19. For one-year Treasury-indexed ARMs, rates were at 2.58%, with an average of 0.4 point. This rate is down from 2.59% from last week, and overall, down from 2.88% a year ago.
Rates on one-year ARM loans hit an all-time low in 1984, with 2.57% hitting during the week ending Oct. 4. Mortgage Bankers Association’s weekly survey shows demands for purchase mortgages up a seasonally adjusted 1% during the week ending October 26th. This is an increase from a week ago and up 6% from the same week a year ago.
Last week, Federal Reserve's Open Market Committee members stated that they expected to keep a target for short-term interest rates at "exceptionally low levels,” which should be true until at least through the middle of 2015.
By increasing purchases of mortgage-backed securities guaranteed by Fannie Mae and Freddie Mac by $40 billion a month, the Federal Reserve is also keeping mortgage rates low. Financial analysts at Fannie Mae believe that the open-ended program may continue through next year, and perhaps, into 2014.
About Low Doc Home Loans: Low Doc Home Loans (http://lowdochomeloanspfg.com.au/) understands the needs and goals of ambitious entrepreneurs. PFG Mortgage Managers are also entrepreneurs, and since 2003, they have been helping thousands of people realize their dreams. PFG founders have aided customers and businesses purchase homes, offices or pursue business expansion.