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Potential homebuyers may benefit from buying now as mortgage rates have reached new record lows for the fifth week in a row. Freddie Mac’s Primary Mortgage Market Survey reveals the 30-year fixed-rate mortgage rate averaged 3.75 percent, a new record low. The 30-year FRM rate averaged 3.78 percent the week before and 4.55 percent this time last year. The 15-year FRM rate average also reached a new record low, falling below 3 percent for the first time in survey history. This means buyers of homes for sale in Los Angeles county and surrounding areas can save significant money on interest by opting for a shorter-term mortgage.

The most recent 15-year FRM rate averaged 2.97 percent, down from the week prior’s average of 3.04 percent and considerably lower than the 3.74 percent average from one year ago. “Compared to a year ago, rates on 30-year fixed mortgage rates are almost 0.9 percentage points lower which translates into nearly $1,200 less in annual payments on a $200,000 loan,” said Frank Nothaft, vice president and chief economist of Freddie Mac. While rates combined with low home prices continue to offer high affordability, economists urge those waiting for the lowest rates to start their home search soon, as they predict both will increase before the end of 2012.

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