Another week, another new low for the long term mortgage markets.

For the 11^th consecutive week Freddie Mac's Primary Mortgage Market Survey showed that the average interest rate for the 30-year fixed-rate mortgage (FRM) broke another record in the 37-year history of the survey.  During the week ended January 15 the rate averaged 4.96 percent with 0.7 point, down from last week's average of 5.01 percent with 0.6 point.

The 15-year FRM was up three basis points from the week ended January 8, averaging 4.65 percent.   Fees and points averaged 0.7 point both weeks.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) dropped nearly a quarter of a point, from 5.49 percent with 0.7 point to 5.25 percent and 0.6 point.  This is the lowest rate for the 5-year hybrid since September 8, 2005 although Freddie Mac has only tracked this mortgage since January 1 of that year.

One-year Treasury-indexed ARMs averaged 4.89 percent with 0.5 point.  Last week the average was 4.95 also with 0.5 point. 

"Interest rates for 30-year fixed rate mortgages fell for the 11^th straight week to another record low, due in part to the slowing economy and government actions," said Frank Nothaft, Freddie Mac vice president and chief economist.  "So far, both the U.S. Treasury Department and the Federal Reserve have added over $100 billion in liquidity to the mortgage market since September 2008, which put downward pressure on interest rates for fixed-rate mortgages.  The Federal Reserve may add up to an additional $570 billion more this year, based on its November 25, 2008 announcement, to further shore up mortgage lending and keep rates low. 

"In December, the unemployment rate rose to 7.2 percent, the highest since January 1993, and the economy lost 2.6 million jobs over 2008, the largest annual drop since 1945.  That brought down yields on Treasury securities and mortgage rates followed."

Earlier in the week Fannie Mae reported on its posted yields for the week ended January 9.  Servicing fees are not included in these quotes.

The 30-year FRM averaged 4.19 percent compared to 4.49 a week earlier.  The 15-year FRM had an average yield of 4.01 compared to 4.14 the week before and the 30 year government guaranteed FHA/VA loans were are 4.96, down from 5.520.   The one-year ARM was up from 4.42 to 4.52.