Mortgage Rates Continue Record-Breaking Streak

Mortgage Rates Continue Record-Breaking Streak

The 30-year fixed-rate mortgage -- the most popular choice among home buyers -- is now a full percentage point lower than a year ago, Freddie Mac reports in its weekly mortgage market survey. Fixed-rate mortgages have been on a record-breaking streak the last few weeks, pushing home affordability even higher.

"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,” says Frank Nothaft, Freddie Mac’s chief economist.

Here’s a closer look at rates for the week ending July 26:

•30-year fixed-rate mortgages: averaged a new low of 3.49 percent, with an average 0.7 point, beating last week’s previous record of 3.53 percent. A year ago, 30-year fixed-rate mortgages averaged 4.55 percent.

•15-year fixed-rate mortgages: averaged a new record low of 2.80 percent, with an average 0.7 point, dropping from last week’s previous record-low of 2.83 percent.Last year at this time, 15-year rates averaged 3.66 percent.

•5-year adjustable-rate mortgages: averaged 2.74 percent, with an average 0.6 point, rising from last week’s record low of 2.69 percent. Last year at this time, 5-year ARMs averaged 3.25 percent.

•1-year ARMs: averaged 2.71 percent, with an average 0.5 point, also rising from last week’s 2.69 percent average. A year ago, 1-year ARMs averaged 2.95 percent.

Source: Freddie Mac

US rate on 30-year mortgage dips to 3.88 percent

US rate on 30-year mortgage dips to 3.88 percent

By Martin Crutsinger AP Economics Writer




WASHINGTON (AP) - The average rate on the 30-year fixed mortgage has dipped to near its record low, keeping home-buying and refinancing affordable.


Mortgage buyer Freddie Mac said Thursday that the rate on the 30-year loan dropped to 3.88 percent this week, down from 3.9 percent. In February, the rate hit 3.87 percent, the lowest since long-term mortgages began in the 1950s.


The 30-year loan is the most common financing option for home buyers.


The average on the 15-year fixed-rate mortgage, popular with homeowners who are refinancing, dipped to 3.12 percent, down from 3.13 percent last week. The national average hit an all-time low of 3.11 percent two weeks ago.


Cheaper mortgages have so far done little to boost home sales. Sales of both previously occupied homes and new homes fell in March. Analysts suspect some of that weakness reflected a warm winter, which pulled sales that would normally occur during the spring buying season into January or February.


In addition, some potential buyers are skeptical about purchasing a home with prices still falling. And many Americans are still struggling with damaged credit.


To calculate the average rates, Freddie Mac surveys lenders across the country on Monday through Wednesday of each week.


The average rate does not include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.


For the five-year adjustable loan, the average rate rose to 2.85 percent, up from 2.78 percent. The average on one-year adjustable loans dropped to 2.74 percent, down from 2.81 percent.


Source: KSL.com: US rate on 30-year mortgage dips to 3.88 percent