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Average Rate on 30-Year Mortgage Eases to 4.87%

The 30-year fixed-rate mortgage averaged 4.87 percent for the week ending October 8, 2009, down from last week when it averaged 4.94 percent, according to Freddie Mac.

Mortgage rates down
Mortgage rates down

Last year at this time, the 30-year rate averaged 5.94 percent. The last time the 30-year was lower was the week ending May 21, 2009, when it averaged 4.82 percent.

The 15-year FRM this week averaged 4.33 percent with an average 0.7 point, down from last week when it averaged 4.36 percent.

A year ago at this time, the 15-year FRM averaged 5.63 percent. This is the lowest the 15-year FRM has been since Freddie Mac started tracking it in 1991.

“Long-term mortgage rates eased further this week,” said Frank Nothaft, Freddie Mac

.

vice president and chief economist. “Interest rates for 30-year fixed-rate loans were the lowest since mid-May; 15-year FRMs were at a record low since data were first collected in 1991 and 5-year ARMs also hit an all-time record starting in 2005.

Compared to a year ago, consumers could shave almost $134 off their monthly mortgage payments on a 30-year fixed-rate loan for $200,000 by refinancing."

“Such low rates are spurring mortgage demand. Mortgage applications surged to a 19-week high over the week ending on October 2nd", according to the Mortgage Bankers Association. “Moreover, applications for home purchases were at the strongest pace since the beginning of this year.”

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  • Diana Olick serves as CNBC's real estate correspondent as well as the editor of the Realty Check section on CNBC.com.

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