Mortgage Rates Drop

Freddie Mac has released the results of it's Primary Mortgage Market Survey.

A 30-year fixed-rate mortgage averaged 5.16 percent for the week ending February 12, 2009. Down .09 percent from last weeks survey. The same time last year the average for a  30-year FRM was 5.72 percent.

A 15-year fixed-rate mortgage averaged 4.81 percent this week, down .11 percent from last week when it averaged 4.92 percent. The same time last year the average for a 15-year FRM was 5.25 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.23 percent this week, with an average 0.6 point, down from last week when it averaged 5.26 percent. The same time last year the average for a 5-year ARM was 5.19 percent.

One-year Treasury-indexed ARMs averaged 4.94 percent this week with an average 0.5 point, up from last week when it averaged 4.92 percent. The same time last year the average for a 1-year ARM was 5.00 percent.

Mortgage rates by region:

Chart source: Freddie Mac

Freddie Mac vice president and chief economist Frank Nothaft said "Interest rates for 30-year fixed-rate mortgages are almost 1.5 percentage points below 2008's peak set on July 24, 2008, offering many homeowners an incentive to refinance. This would translate into a monthly payment savings of around $188 on a $200,000 mortgage."

As a result of near record low interest rates mortgage applications and mortgage refinance applications are soaring. Are we at the beginning of the end of the housing crises? Time will tell.

Let's hope the low interest rates and government programs are starting to bring the housing market back to life.