Jr.'s Blog

Mortgage rates once again inched lower this week, lowering the cost of borrowing and increasing housing affordability. 

"Most mortgage rates eased to all-time record lows this week as fourth quarter growth in the economy fell short of market projections,” Frank Nothaft, Freddie Mac’s chief economist, said in a statement.

Here’s a closer look at rates for the week ending Feb. 2: 

• 30-year fixed-rate mortgages: averaged a new record low of 3.87 percent, with an average 0.8 point, dropping from last week’s 3.98 percent average. A year ago at this time, 30-year rates averaged 4.81 percent. 
• 15-year fixed-rate mortgages: also reached new lows this week, averaging 3.14 percent, with an average 0.8 point. Last week, 15-year rates averaged 3.24 percent and a year ago at this time 15-year rates averaged 4.08 percent. 
• 5-year adjustable-rate mortgages: averaged 2.80 percent, with an average 0.7 point, dropping from last week’s 2.85 percent average. Last year at this time, 5-year ARMs averaged 3.69 percent. 
• 1-year ARMs: averaged 2.76 percent this week, with an average 0.6 point, inching up slightly from last week’s 2.74 percent average. A year ago, 1-year ARMs saveraged 3.26 percent. 

Source: Freddie Mac

Distressed Housing Market Data:
 
•  At 53.9 percent, equity sales made up more than half of home sales in October, down from
   55.5 percent in September and 55.2 percent in October 2010.

•  While equity sales have edged down from their peak of 57.1 percent in July 2011, they are
    up from the beginning of the year when less than half (46.5 percent) of sales were non-distressed.

•  The total share of all distressed property types sold statewide rose to 46.1 percent in October,
    up from September’s 44.5 percent and 44.8 percent in October 2010.

•   Of the distressed properties sold statewide in October, 20.7 percent were short sales, slightly
     up from the previous month’s share of 20.1 percent and up from last October’s share of 19.7
     percent.

•   At 24.9 percent, the share of REO sales was up from September’s 24.0 percent, and slightly
    up from the 24.8 percent reported in October 2010.


Multimedia:
View a chart of pending sales compared with closed sales 

Single-family Distressed Home Sales by Select Counties (percent of total sales)