Financial Schools Reviews

Results from Freddie Mac’s Primary Mortgage Market Survey revealed that mortgage rates for all mortgage products examined dove to new all-time record lows during the week ending January 12, 2012.

In this latest data, 30-year fixed-rate mortgages fell to average of 3.89 percent after coming in at 3.91 percent last week. In addition, 15-year fixed-rate mortgages dropped to an average of 3.16 after averaging 3.23 percent one week ago.

These averages are a far cry from the averages seen for these two mortgage products last year at this time. One year ago, 30-year fixed mortgages sat at an average of 4.71 percent, while 15-year fixed mortgages averaged 4.08 percent.

Adjustable-rate mortgages (ARMs) also hit new bottoms. Average rates for 5-year ARMs fell from 2.86 percent to 2.82 percent week-over-week, while 1-year ARMs dropped to an average of 2.76 percent (2.80 percent last week).

“Mortgage rates eased slightly this week to all-time record lows following mixed indicators in the labor market,” Frank Nothaft, vice president and chief economist, Freddie Mac, said in a statement.

Last year saw the creation of 1.6 million new jobs in the U.S., Nothaft said, more than any year since 2006. But this didn’t keep the unemployment rate from staying relatively high.

“The 2009 to 2011 period had the highest three-year average unemployment rate since 1939 to 1941,” he said. “Moreover, the Federal Reserve indicated in its January 11th regional economic review that most industries saw limited permanent hiring at the end of last year.”

According to Freddie Mac, 30-year fixed mortgages have now averaged 4.00 percent for six straight weeks.