Fixed mortgage rates fell to all-time record lows this week following the Federal Reserve's announcement of ""Operation Twist.""[IMAGE]
The central bankÃ¢â‚¬â„¢s ""new stimulus policy"":http://www.dsnews.com/articles/new-fed-stimulus-gse-mortgage-bonds-and-treasuries-on-shopping-list-2011-09-21 entails reinvesting principal payments from its holdings of GSE debt and mortgage-backed securities back into new mortgage bonds issued by Fannie Mae and Freddie Mac. The Fed also intends to purchase $400 billion more of Treasury securities by the end of June 2012.
Data released by ""Freddie Mac"":http://www.freddiemac Thursday puts the average 30-year fixed-rate mortgage at 4.01 percent (0.7 point)[COLUMN_BREAK]
for the week ending September 29. ThatÃ¢â‚¬â„¢s down from 4.09 percent last week. A year ago at this time, the 30-year rate averaged 4.32 percent.
Of the five regions surveyed in Freddie Mac's survey, the West region recorded the lowest average rate for the 30-year fixed dipping below the 4 percent to 3.95 percent this week.
The 15-year fixed-rate averaged 3.28 percent (0.7 point) this week in the GSEÃ¢â‚¬â„¢s survey, down from last weekÃ¢â‚¬â„¢s average of 3.29 percent. A year ago at this time, the 15-year rate was 3.75 percent.
Both the 30-year and 15-year fixed rates averaged an all-time record low in Freddie MacÃ¢â‚¬â„¢s study. Interest rates for adjustable-rate mortgages (ARMs), on the other hand, were virtually unchanged.
The 5-year ARM averaged 3.02 percent (0.6 point) this week, matching last weekÃ¢â‚¬â„¢s average. A year ago, the 5-year ARM was 3.52 percent.
The 1-year ARM came in at 2.83 percent (0.6 point), up one basis point from 2.82 percent last week. At this time last year, the 1-year ARM averaged 3.48 percent.
""Freddie MacÃ¢â‚¬â„¢s survey"":http://www.freddiemac.com/pmms/ averages mortgage rates from 125 lenders across the country.