Industry NewsMortgage

ARM rates set new records

Purchase-loan demand still off from last year

Fixed-rate mortgages bounced back slightly this week from last week's record lows, but rates on adjustable-rate mortgage (ARM) loans have never been lower in records kept by Freddie Mac.Rates on 30-year fixed-rate mortgage averaged 4.21 percent with an average 0.8 point for the week ending Oct. 21, Freddie Mac said in releasing the results of its Primary Mortgage Market Survey. That's up from 4.19 percent last week and 5 percent a year ago.Last week's rate was a low in Freddie Mac records dating to 1971, and the lowest since April 1951, according to another set of data going back to 1948 that's based on FHA rates.Rates on 15-year fixed-rate mortgages averaged 3.64 percent this week with an average 0.7 point, up from 3.62 percent last week and 4.43 percent a year ago. Last week's rates for 15-year fixed-rate loans was a low in Freddie Mac records dating to 1991.Rates on 5-year Treasury-indexed hybrid ARM loans averaged 3.45 percent this week, with an average 0.6 point, down from 3.47 pe...

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