Mortgage Rates Keep Tumbling Down

August 05, 2010

How low can they go?

U.S. mortgage rates have hit another record low, according to a report released by mortgage lender Freddie Mac on Thursday.

In fact, all four fixed-rate loan types reached their lowest levels since the government-run mortgage house started keeping track, which was in 1971 for 30-year fixed-rates and 1991 for 15-year rates. The 5-year adjustable has been tracked since 2005.

Here’s the breakdown on the new record low rates:

*30-year fixed-rate mortgage (FRM) averaged 4.49 percent for the week ending August 5; down from 4.54 percent last week and 5.22 percent at this time last year. 30-year rates have fallen to new record lows in six of the last seven weeks.

*15-year FRM averaged 3.95; down from 4.00 last week and 4.63 last year. 15-year rates have fallen to new record lows in five of the last seven weeks.

*5-year hybrid adjustable-rate mortgage (ARM) averaged 3.63 percent; down from 3.76 last week and 4.73 last year.

*1-year ARM averaged 3.55 percent; down from 3.64 percent last week and 4.78 percent last year.

The Mortgage Bankers Association said Wednesday that U.S. mortgage applications to purchase homes rose last week for a third straight week as rates tumbled.

And, for a current owner who qualifies, refinancing at these rates could save a homeowner tens of thousands of dollars.

Categories: Economy, Featured

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