30-Year Fixed-Rate Mortgage at Record Low 3.40%

The 30-year fixed-rate mortgage hit an all-time low, averaging 3.40% as of September 27, 2012, this according to the latest Freddie Mac’s Primary Mortgage Market Survey.

The 30-year fixed-rate mortgage is the preferred choice of would be homebuyers.

The latest 30-year fixed-rate mortgage average dropped from the 4.01% for the same period last year.

Meanwhile, the 15-year fixed-rate mortgage, the popular option for refinancing, averaged 2.73% as of last September 27, a drop from last year’s 3.28% average.

Frank Nothaft, vice president and chief economist of Freddie Mac, said in a statement, “Fixed mortgage rates continued to decline this week, largely due to the Federal Reserve’s purchases of mortgage securities, and should support an already improving housing market.”

The vice president and chief economist of Freddie Mac added, “For instance, the S&P/Case-Shiller® 20-city home price index rose 1.2 percent over the 12 months ending in July, reflecting the largest annual increase since August 2010. Moreover, 16 of the cities saw positive growth, led by Phoenix’s 16.6 percent gain. Additionally, new home sales in July and August had the strongest two-month pace since March and April 2010.”

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