Mortgage rates reach new record lows

Fixed-rate mortgage rates
this week are at an all-time record low of 4.01
percent, according to a statement released by Freddie Mac today. The
15-year rate also averaged an all-time record low at 3.28 percent for
the week.

The 30-year rate was down an average of 0.7 points from the week before,
when it averaged 4.09 percent. Last year at this time, the 30-year fix-rate
averaged 4.32 percent. The 15-year rate was also down an average 0.7
point from the week before, when it averaged 3.29 percent. A year ago
at this time, the 15-year fixed-rate averaged 3.75 percent.

The five-year adjustable-rate mortgages averaged 3.02 percent this
week, with an average 0.6 point, matching last week when it also
averaged 3.02 percent.

“Fixed mortgage rates fell to all-time record lows this week following
the Federal Reserve’s announcement of its Maturity Extension Program
and additional purchases of mortgage-backed securities,” said Frank
Nothaft, vice president and chief economist at
Freddie Mac.

“Meanwhile, the spring and summer home-buying season gave a boost to a
number of house price indexes,” he added. He noted that recent reports
by the Federal Housing Finance Agency, the S&P Case Shiller 20-city
Composite Index and CoreLogic all saw increases in July. — Miranda
Neubauer