Mortgage rates reach historic lows

September 01, 2011 02:39PM

Mortgage rates are declining further amid continued weak economic and housing data, according to Freddie Mac’s Primary Mortgage Market Survey, released today. While the 30-year fixed rate held steady, the five-year adjustable rate mortgage set a new all-time record low having fallen for the eighth consecutive week and now standing at 2.96 percent.

For the second week in a row, the 30-year fixed-rate mortgages averaged 4.22 percent for the week ending today. Last year at this time, the 30-year FRM averaged 4.32 percent.

Fifteen-year fixed-rate mortgages this week averaged 3.39 percent, down from last week when it averaged 3.44 percent. A year ago at this time, the 15-year FRM averaged 3.83 percent.

“Weaker economic data reports eased upward pressure on mortgage rates this week and kept them at or near all-time record lows,” said Frank Nothaft, vice president and chief economist for Freddie Mac. “The economy grew at a slower rate of 1 percent in the second quarter than was originally reported due to a smaller increase in inventories and fewer exports. In addition, consumer confidence in August fell to the lowest reading since April 2009, according to the Conference Board.” — Katherine Clarke