Mortgage Rates Break Records for Second Week in Row
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UPDATED: May 10, 2012
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Roll out the red carpet, as fixed-rate mortgage loans have broken historic interest rate records yet again. This is the second consecutive week that that mortgage interest rates have had their floors shattered.
According to Freddie Mac, the 30-year fixed-rate mortgage averaged at 3.83 percent this week—down from 3.84 percent last week, and 4.63 percent this time last year.
The 15-year fixed-rate mortgage also broke records again, averaging at 3.05 percent this week—down from 3.07 percent last week, and 3.83 percent this time last year.
“Following April’s weaker than expected employment report, and the French and Greek election results raising concerns over the stability of the Euro currency zone, long-term Treasury bond yields declined allowing fixed mortgage rates to ease to new all-time record lows this week,” explained Frank Nothaft, vice president and chief economist of Freddie Mac, in a press release. “The economy added just 115,000 jobs, below the market consensus forecast and less than in March. And although the unemployment rate declined, it reflected fewer people actively seeking jobs.”
Despite these impactful domestic and foreign happenings cited by Nothaft, rates have been on the decline for some time.
Freddie Mac said that, aside from one week, rates have been below 4 percent since early December. But despite these low rates, people are not taking advantage of these cheap mortgage loans, and home sales continue to remain slow and depressed.
So long as the market remains slumped, rates will likely continue to remain low in an effort to stimulate home sales and the appeal of mortgage loans.
These rates are derived from a weekly survey put on by Freddie Mac who collects data from lenders across the country every Monday to Wednesday.