30-Year, 15-Year Mortgages Set New Lows: 4.56%; 4.03%

The 30-year and 15-year fixed rate mortgages set new record lows again this week, as home sales activity remains sluggish and consumer confidence in the economy weakens along with the pace of recovery, according to Freddie Mac.
The 30-year fixed-rate mortgage averaged 4.56 percent, down from last week when it averaged 4.57 percent. Last year at this time, the 30-year loan averaged 5.20 percent.
The 15-year fixed-rate mortgage this week averaged 4.03 percent, down from last week when it averaged 4.06 percent. A year ago at this time, the 15-year averaged 4.68 percent.
Both set new lows based on Freddie Mac’s records. The mortgage-finance giant first started tracking the 30-year fixed mortgage rate in 1971; the 15-year rate in 1991.
“The decline in mortgages rates over the past few weeks echoes the recent signs of weakening confidence in the strength of the economy, particularly the housing and consumer sectors. For example, homebuilder confidence declined in July to lows not seen since April 2009,” said Frank Nothaft, vice president and chief economist, Freddie Mac.
The 1-year Treasury-indexed adjustable rate mortgage averaged 3.70 percent this week, down from last week when it averaged 3.74 percent. At this time last year, the 1-year ARM averaged 4.77 percent.
See Related Articles:

Leave a Reply

Your email address will not be published. Required fields are marked *