The average rate for a 30-year fixed rate home loan dipped below 4 percent for the second time this year, Freddie Mac reported Thursday.
“Soft house prices and low mortgage rates have kept home-buyer affordability historically high, according to the National Association of Realtors,” says Frank Nothaft, vice president and chief economist of Freddie Mac. “These factors helped raise September's NAR Housing Affordability Index to the third highest reading on record which dates back to 1971."
The Multiple Listing Service of Long Island reports a similar story on the local front, with a 4.3 percent improvement in housing affordability this September compared with last September in Nassau County, and an 8.2 percent bump in Suffolk for the same time periods.
A 30-year fixed rate loan averaged averaged 3.99 percent with an average 0.7 point for the week ending Nov. 10, 2011, down from last week when it averaged 4 percent. Last year at this time, the 30-year fixed-rate loan averaged 4.17 percent. The average rate for a 15-year fixed-rate mortgage was 3.30 percent with an average 0.8 point, down from 3.31 percent last week and 3.57 percent a year ago.
The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.98 percent this week, with an average 0.6 point, up from last week when it averaged 2.96 percent. A year ago, the five-year ARM averaged 3.25 percent. For the one-year Treasury-indexed ARM, the average was 2.95 percent this week, with an average 0.6 point, up from last week when it averaged 2.88 percent. At this time last year, the one-year ARM averaged 3.26 percent.