30-year fixed-rate mortgage: Averaged 4.32 percent with an average 0.8 point for the week ending September 30, 2010, down from last week when it averaged 4.37 percent. Last year at this time, the 30-year FRM averaged 4.94 percent.

The 15-year fixed-rate mortgage: Averaged a record low of 3.75 percent with an average 0.7 point , down from last week when it averaged 3.82 percent. A year ago at this time, the 15-year FRM averaged 4.36 percent.

Five-year indexed hybrid adjustable-rate mortgages ARMs: Averaged 3.52 percent this week, with an average 0.6 point , down from last week when it averaged 3.54 percent. A year ago, the 5-year ARM averaged 4.42 percent.

One-year Treasury-indexed ARMs: Averaged 3.48 percent this week with an average 0.7 point, up from last week when it averaged 3.46 percent. At this time last year, the 1-year ARM averaged 4.49 percent.

Freddie Sayz

Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac.

Confidence in the state of the economy fell among consumers and businesses, which led to a decline in long term bond yields and brought many mortgage rates to record lows this week. The September Consumer Confidence Index by the Conference Board fell to the lowest level since February of this year, while the Business Roundtable CEO Business Outlook for the third quarter was the weakest in the past four quarters. Consequently, rates for the 15 year fixed mortgage and the 5 year hybrid ARM reached new all-time lows and rates for 30-year fixed mortgages tied its record set just four weeks ago.

Homeowners have regained $1.0 trillion in home equity as of the second quarter of 2010 after losing more than $7.5 trillion over the three year period ending in the first quarter of 2009, the Federal Reserve Board reported. This, in part, strengthened household balance sheets and reduced serious mortgage delinquencies. For instance, first mortgages 90 days delinquent or worse fell to 3.16% in August from 4.76% a year prior and was the lowest rate since June 2008, according to the S&P/Experian Consumer Credit Default Indices .

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