ABBA First Mortgage News

Rates remain low through these troubling times

For the week ending September 10, Freddie Mac announced that 30-year fixed rates fell to 2.86% from 2.93% the week before. The average for 15-year loans decreased to 2.37S% and the average for five-year ARMs increased to 3.11%. A year ago, 30-year fixed rates averaged 3.56%, over .50% higher than today. “Rates on home loans have hit another record low due to a late summer slowdown in the economic recovery. These low rates have ignited robust purchase demand activity, which is up twenty-five percent from a year ago and has been growing at double digit rates for four consecutive months. However, heading into the fall it will be difficult to sustain the growth momentum in purchases because the lack of supply is already exhibiting a constraint on sales activity,” said Sam Khater, Chief Economist, Freddie Mac.

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