Mortgage Rates Keep Falling

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Mortgage rates continued to fall this week, with average interest rates on both 30-year and 15-year fixed-rate loans dropping again to new record lows in the weekly Freddie Mac rate survey.

Average rates on 30-year fixed-rate mortgages fell to a new record low of 3.62 percent this week, down from last week's previous record of 3.66 percent. It was the 10 th time in the past 11 weeks that 30-year rates have dropped to a new all-time low in the Freddie Mac survey.

Meanwhile, interest rates on 15-year fixed-rate mortgages dropped to an average of 2.89 percent, down from last week's previous record of 2.94 percent. Initial rates on 5-year adjustable-rate mortgages (ARMs) were unchanged at an average of 2.79 percent.

The rates include 0.7 points in discount and origination fees for the fixed-rate loans, and 0.6 points for the 5-year ARM.

Average interest rates on 30-year fixed-rate mortgages have fallen by nearly a full percent over the past year. One year ago this week, 30-year mortgages were average 4.60 percent, while 15-year loans were at 3.75 percent and 5-year ARMs were averaging 3.30 percent.

Frank Nothaft, Freddie Mac chief economist, attributed this week's falling rates to reports of weakening consumer spending and a slowdown in manufacturing date, which triggered a decline in Treasury bond yields, which set the pattern for interest rates in general.

Originally published on MortgageLoan.com at: http://www.mortgageloan.com/mortgage-rates-keep-falling-9149



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Personal Finance , Banking and Loans

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