More record lows for mortgage rates
Mortgage rates continue to sink to new depths, seemingly shattering previous lows every week. In the week ending today, the 30-year and 15-year fixed-rate mortgages were at all-time lows, according to the Primary Mortgage Market Survey released today by Freddie Mac.
The 30-year fixed rate is 4.12 percent, down from 4.22 percent last week and 4.35 percent during the same period a year ago. The 15-year rate declined to 3.33 percent, down from 3.39 percent last week and 3.83 percent during the same week of 2010.
Five-year adjustable-rate mortgages matched the all-time low set last week of 2.96 percent, down from 3.56 percent last year. The one-year adjustable rate was down to 2.84 percent, also an all-time low.
“Market concerns over Eurozone sovereign debt default and a weak U.S. employment report for August placed downward pressure on Treasury bond yields and allowed fixed mortgage rates to hit new lows this week,” said Frank Nothaft, chief economist for Freddie Mac. Nothaft added that the U.S. is currently undergoing its longest streak of consecutive months where the unemployment rate is above 8 percent, and said that the Federal Reserve’s most recent economic review, released yesterday, warned of a bleak near-term future for the economy.
In addition to mortgage rates, the mortgage industry is suffering, as recent reports show it cut 2,000 jobs this year. — Adam Fusfeld