30-Year Mortgage Sets Record Low at 4.49%; 15-Year at 3.95%

Low interest ratesFixed-rate mortgages set new lows for the 7th week in a row, with the 30-year at 4.49 percent and the 15-year at 3.95 percent, Freddie Mac said today.
The 30-year was down from last week’s rate of 4.54 percent. Last year at this time, it averaged 5.22 percent.
The 15-year was down from 4.00 percent last week. A year ago, it averaged 4.63 percent.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.63 percent this week, also setting a new low. Last week, it averaged 3.76 percent. A year ago, the 5-year ARM averaged 4.73 percent.
The record lows this week followed the release of the second quarter 2010 GDP (gross domestic product).
“Annual revisions cut the cumulative GDP growth in half over the past three years, ending in the first quarter of 2010 from 1.4 percent to 0.6 percent. This reduces inflationary pressures and allows longer-term rates room to ease,” said Frank Nothaft, vice president and chief economist, Freddie Mac.
The Mortgage Bankers Association yesterday reported that applications for conventional home mortgages were flat last week, continuing sluggish home loan demand despite the historically low rates.
Even the refinance portion of mortgage activity – normally higher during periods of low rates – remained flat at 78 percent last week, the MBA said.
See Related Articles: