Rates Are Trending Downward Still; 15-Year Hits Record Low

Record high-levels of homebuyer affordability continue as rates drop and stay near their 60-year lows, according to ""Freddie Mac's"":http://www.freddiemac.com/ Primary Mortgage Market Survey.

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The 15-year fixed hit an all-time record low of 3.13 percent. Aside from the 1-year ARM, all rates saw a decrease.

The 30-year fixed-rate mortgage averaged 3.88 percent (0.8 point) for the week ending March 8, a decrease compared to last week's average of 3.90 percent. Last year at this time, the 30-year rate averaged 4.88 percent.

The 15-year fixed-rate stood at 3.13 percent (0.8 point), down from last week when it was 3.17 percent. A year ago at this time, the 15-year rate averaged 4.15 percent.

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The 5-year ARM decreased at 2.81 percent (0.7 point). Last week it averaged 2.83 percent, and 3.73 percent a year ago at this time.

The 1-year ARM saw a slight increase at 2.73 percent (0.6 point) this week, compared to last week's average of 2.72 percent. The 1-year ARM averaged 3.21 percent last year at this time.

""With these historically low rates and declining house prices, the typical family had more than double the income needed to purchase a median-priced home in January,"" said Frank Nothaft, VP and chief economist, Freddie Mac, noting the ""National Association of Realtor's"":http://www.realtor.org/ Housing Affordability Index, which registered the highest reading since records began in 1970.

In addition to this report, Nothaft added that ""Corelogic's"":http://www.corelogic.com/ Home Price Index fell for the sixth consecutive month in January to the lowest level since January 2003.

""This high level of affordability likely contributed to the recent two-week rise ending March 2nd in mortgage applications for home purchases,"" Nothaft said.

Finance website ""Bankrate.com"":http://www.bankrate.com/ released its report, which showed the 30-year fixed-rate mortgage rose slightly to 4.11 percent compared to 4.10 percent last week. Bankrate.com's results are from a national survey of large lenders. The 15-year fixed was at 3.34 percent, .01 percent down from last week. The five-year ARM averaged 3.03 percent, also down .01 percent.