The 30-year fixed-rate mortgage averaged 5.19 percent with an average 0.7 point for the week ending December 18, 2008-a 37-year low- according to Freddie Mac's Primary Mortgage Market Survey. It was down from last week when it averaged 5.47 percent. Last year at this time, the 30-year FRM averaged 6.14 percent. The 30-year FRM has not been lower since Freddie Mac started the Primary Mortgage Market Survey in 1971.
The 15-year FRM this week averaged 4.92 percent with an average 0.7 point, down from last week when it averaged 5.20 percent. A year ago at this time, the 15-year FRM averaged 5.79 percent. The 15-year FRM has not been lower since April 1, 2004, when it averaged 4.84 percent.
REAL Trends Comment: As we first noted in September, lower rates combined with higher affordability would significantly stimulate sales. And despite direct Federal intervention in lowering mortgage rates these two factors are having a positive affect on housing.
While housing markets overall will remain sluggish through next year, recovery depends on low mortgage rates, strong affordability and job/income growth. Unfortunately for optimists, the general economic slowdown will mute any increase in sales in the short term."
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