By Kevin Chiu
The rate on a 30-year fixed rate mortgage dropped to tie its all-time low averaging 4.32% for the week, according to Freddie Mac. But the rate on its companion 15-year fixed rate mortgage hit another record low.
A 15-year mortgage can now be had for a record low of 3.75% with an average 0.7 point down from 3.82% last week. The Treasury indexed 5-year adjustable rate mortgage averaged 3.52% for the week, a .02 drop from last week.
“Confidence in the state of the economy fell among consumers and businesses, which led to a decline in long-term bond yields and brought many mortgage rates to record lows this week,” said Freddie Mac chief economist Frank Nothaft.
“The September Consumer Confidence Index by the Conference Board fell to the lowest level since February of this year, while the Business Roundtable CEO Business Outlook for the third quarter was the weakest in the past four quarters.”
The Federal Reserve reported homeowners regained $1-trillion in home equity as of the second quarter after losing more than $7.5-trillion over the three-year period ending in the first quarter of 2009. The figure represents the most significant improvement yet in homeowner equity since the housing market crashed more than four years ago.
More than 1 in 4 homeowners have less equity in their homes than what they owe on their mortgages.
A one year Treasury indexed ARM averaged 3.48% for the week with an average 0.7 point, up from last week’s average of 3.46%. A year ago the same loan averaged 4.49%.