Mortgage interest rates for the week ended January 24 continued to fall and long term rates hit their lowest levels since the spring of 2004 according to the results of Freddie Mac's Primary Mortgage Market Survey for the week ended January 24, 2008.

The survey showed that the 30-year fixed-rate mortgage (FRM) had an average interest rate of 5.48 percent with 0.4 point during the week compared to an average of 5.69 percent with 0.5 point a week earlier. One year ago the 30-year FRM stood at 6.25 percent. The January 24 number was the lowest the 30-year FRM has been since the week ended March 24, 2004 when it averaged 5.40 percent.

The 15-year FRM fell from 5.21 percent during the week ended January 17 to an average of 4.95 percent, the lowest mark since the week ended April 1, 2004 when it averaged 4.84 percent. Fees and points were unchanged at 0.4. During the same week in 2007 the 15-year averaged 5.98 percent. It was in the year-over-year figures where the picture was really dark. Preliminary figures indicate that 774,000 new homes were sold in all of 2007. This is 26.4 percent fewer than the 1,051,000 sold during 2006. This was the worst sales year on record, surpassing the old "worst" of -23.1 percent set in 1980, a period when interest rates were in double digits.

The median sales price of new houses sold last month was $219,200 and the average price was $267,300. In December 2006 the median and average sales prices were $244,700 and $301,900 respectively. This was the weakest pricing has been in 16 years.

The report estimated that there were 495,000 new homes available for sale at the end of December. At the current sales rate this represents a 9.6 month supply. At the end of November there were 502,000 homes for sale, a 9.4 months supply.

Houses that sold in December were on the market for a median time period of 6.3 months while a builder could have anticipated a median marketing time of 4.3 months one year ago.

01/30/2008 - Mortgage News Daily