Mortgage Rates Down to Start Year

By:: Peter King | January 05, 2012

Mortgage rates are starting out the New Year at or near their all-time lows, trending down slightly from the week before, according to rate survey figures released today by Freddie Mac.

Average interest rates on 30-year fixed-rate mortgages dropped to 3.91 percent, matching their all-time low in the Freddie Mac survey, down from 3.95 percent last week. That’s close to a full percentage point lower than where they were last year at this time, when 30-year rates were averaging 4.77 percent, which seemed very low at the time.

Interest rates on 15-year fixed-rate mortgages and 5-year adjustable rate mortgages (ARMs) also declined slightly from last week, hovering just above their all-time lows. Average rates on 15-year loans fell to 3.23 percent, down from 3.24 percent last week, while initial rates on 5-year ARMs dropped to 2.86 percent, down 2.88 percent last week.

“Fixed mortgage rates started the year a little lower this week just as recent data reports indicate the housing market and manufacturing industry are showing signs of improvement,” said Frank Nothaft, Freddie Mac chief economist. He noted that pending home sales rose five times faster than expected in November, according to recent figures from the National Association of Realtors, while the Census Bureau reported that residential construction spending rose for a fourth consecutive month.

All mortgage interest rates reported are based on an 80 percent loan-to-value ratio and include an average of 0.8 points in origination and discount fees on fixed-rate loans, and 0.7 points on ARMs. The reporting period is for the seven-day period ending today.

Call For Rates

800-419-1494

Speak to a lender now.

We will match calls to our toll free number with our network of lenders.

National Rates

Loan Type	Today	+/-
30 yr fixed	3.72
15 yr fixed	3.03
5/1 ARM	2.75

Rates may contain points

Compare Rates »

Browse Mortgage Rates

Featured Guides

Browse our comprehensive guides to popular topics related to mortgage and personal finance.

Mortgage Rates Calculators

Mortgage Loan Directory and Information, LLC or Mortgageloan.com does not offer loans or mortgages. Mortgageloan.com is not a lender or a mortgage broker. Mortgageloan.com is a website that provides information about mortgages and loans and does not offer loans or mortgages directly or indirectly through representatives or agents. We do not engage in direct marketing by phone or email towards consumers. Contact our support if you are suspicious of any fraudulent activities or if you have any questions.

Mortgageloan.com is a news and information service providing editorial content and directory information in the field of mortgages and loans. Mortgageloan.com is not responsible for the accuracy of information or responsible for the accuracy of the rates, APR or loan information posted by brokers, lenders or advertisers.