US mortgage rates have hit record lows, Freddie Mac said Thursday in its weekly report, following “mixed” labor market indicators.
The average rate on the 30-year fixed-rate mortgage fell to a record low of 3.89 percent in the week ended Jan. 12, compared with 3.91 percent in the prior week, according to Freddie, a buyer of residential mortgages. The figures go back to 1971.
A year ago, the 30-year rate was at 4.71 percent.
“Although the economy added 1.6 million jobs in 2011, which was the most since 2006, the unemployment rate remained historically elevated,” Freddie Mac chief economist Frank Nothaft said in a statement.
To obtain the latest rate, payment of an average 0.7 point was required. A point is one percent of the mortgage amount, charged in prepaid interest.
The 15-year fixed-rate mortgage fell to a record low of 3.16 percent in the latest week from 3.23 percent in the prior week. These figures go back to 1991.
Meanwhile, the average rate on the five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) declined to a record low of 2.82 percent from 2.86 percent.
The one-year Treasury-indexed ARM fell to a record low of 2.76 percent from 2.80 percent.