Feb
02

Mortgage Rates Hit More Historic Lows

February 02, 2012

As long as they keep falling, we’re going to keep telling you about them.

arrow downThe economy continues to struggle and mortgage rates continue to drop. This week each mortgage option reached a new all-time low except the 1-year ARM, which actually posted an increase.

Mortgage rates for the week ending February 2, according to Freddie Mac:

*30-year fixed-rate mortgage (FRM): Averaged 3.87 percent for a new record low, down from last week when it averaged 3.98 percent. Last year at this time, the 30-year FRM averaged 4.81 percent.

*15-year FRM: Averaged 3.14 percent to hit a new low, down from last week when it averaged 3.24 percent. A year ago at this time, the 15-year FRM averaged 4.08 percent.

*5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM): Hit a new all-time low by averaging 2.80 percent, down from last week when it averaged 2.85 percent. A year ago, the 5-year ARM averaged 3.69 percent.

*1-year Treasury-indexed ARM: Averaged 2.76 percent, up from last week when it averaged 2.74 percent. At this time last year, the 1-year ARM averaged 3.26 percent.

“Most mortgage rates eased to all-time record lows this week as fourth quarter growth in the economy fell short of market projections,” said Frank Nothaft, vice president and chief economist, Freddie Mac.

“The Gross Domestic Product rose 2.8 percent in the final three months of 2011, below the market consensus forecast of 3.0 percent, while consumer spending in December was flat. One bright spot, however, was that fixed residential investment increased for the third consecutive quarter and residential construction spending rebounded in December, rising 0.7 percent.”

We are going to continue to see ups and downs throughout the economy and rates as America tries to get on solid ground.

So, we wonder: How low do you think mortgage rates will go?

Categories: Economy, Mortgages

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Tracey

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