Mortgage Rates Drop to New Record Low

After dropping for several weeks, fixed rates are now even lower

   
Mortgage Rates Drop to New Record Low

house with dollar sign Mortgage Rates Drop to New Record LowEvery week, Freddie Mac releases a report on mortgage rates. And for the past several weeks, just about every report has seen those rates drop. Now, they’re at yet another all-time low.

Why the record-breaking drop?

“Recent economic data releases of less consumer spending and a contraction in the manufacturing industry drove long-term Treasury bond yields lower over the week, and allowed fixed mortgage rates to hit new all-time record lows,” Frank Nothaft, Freddie Mac’s chief economist, told CNNMoney.com.

Last week, the rate for a 30-year, fixed-rate loan was 3.66%. This week, the popular loan is down to 3.62%.

The 15-year fixed rate — which tends to attract homeowners looking to refinance or seeking a trade-up — also dropped. It now sits at 2.89% from a rate of 2.94% last week.

The rate has matched or hit a new low for 10 of the past 11 weeks.

-Alyssa Oursler, InvestorPlace Editorial Assistant


Article printed from InvestorPlace Media, http://investorplace.com/2012/07/mortgage-rates-drop-to-new-record-low/.

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