Mortgage rates are still on a record pace, with the 30-year fixed rate averaging 3.49 percent this week, more than a full percentage point lower than a year ago when it averaged 4.55 percent, said Freddie Mac.
Meanwhile, the 15-year fixed-rate mortgage, a popular option for those refinancing, also set another record low at 2.80 percent.
Concerns over a weakening or sluggish economic recovery is behind the persistent record-setting streak for mortgages, creating historic opportunities for those who are looking to purchase new or existing homes.
“Market concerns over the strength of the economic recovery brought long-term Treasury yields to new lows this week allowing fixed mortgage rates to reach record levels,” said Frank Nothaft, vice president and chief economist, Freddie Mac.
Existing home sales fell to 4.36 million homes at an annualized rate in June, marking the slowest pace since October 2011.
New home sales plunged in June to their lowest level since January of this year.
Here’s Freddie Mac’s overview:
- 30-year fixed-rate mortgage averaged 3.49 percent, with an average 0.7 point for the week ending July 26, 2012, down from last week when it averaged 3.53 percent. Last year at this time, the 30-year FRM averaged 4.55 percent.
- 15-year fixed rate this week averaged 2.80 percent, with an average 0.7 point, down from last week when it averaged 2.83 percent. A year ago at this time, the 15-year FRM averaged 3.66 percent.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.74 percent this week, with an average 0.6 point, up from last week when it averaged 2.69 percent. A year ago, the 5-year ARM averaged 3.25 percent.
- 1-year Treasury-indexed ARM averaged 2.71 percent this week, with an average 0.5 point, up from last week when it averaged 2.69 percent. At this time last year, the 1-year ARM averaged 2.95 percent.