In Freddie Mac's results of its Primary Mortgage Market Survey®, fixed mortgage rates broke their previous average record lows helping to keep homebuyer affordability high and refinancing strong to support an already improving housing market. All mortgage products, except the 5-year ARM, averaged new all-time record lows.
According to Frank Nothaft, vice president and chief economist, Freddie Mac:
"Fixed mortgage rates continued to decline this week, largely due to the Federal Reserve's
purchases of mortgage securities, and should support an already improving housing market. For instance, the S&P/Case-Shiller® 20-city home price index rose 1.2 percent over the 12 months ending in July, reflecting the largest annual increase since August 2010. Moreover, 16 of the cities saw positive growth, led by Phoenix's 16.6 percent gain. Additionally, new home sales in July and August had the strongest two-month pace since March and April 2010."