30-year fixed-rate mortgages are averaging record-breaking lows, according to Freddie Mac. The company has released results of its Primary Mortgage Market Survey showing that a streak of lows is continuing.
According to the survey, the mortgages averaged 3.49%, which is over a full percentage point lower than a year ago, when it averaged 4.55%.
Frank Nothaft, vice president and chief economist at Freddie Mac said,”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.”
“The Conference Board Leading Economic Index showed the largest monthly decline in June since September 2011,” he added. “Existing home sales fell to 4.36 million homes (annualized) in June and represented the slowest pace since October 2011. Similarly, new home sales fell in June to their lowest level since January of this year.”
The 15-year fixed-rate mortgage also set a record low, according to the survey, falling to 2.8%. A year ago, they averaged 3.66%.
Meanwhile, 5-year Treasury-indexed hybrid adjustable-rate mortgages (ARM) averaged 2.74% for the week, down from 3.25% last year. 1-year Treasury-indexed ARM rates averaged 2.71. A year ago, they were averaging 2.95%.
You can get a closer look at the survey results here.