Fixed-rate mortgages hit new all-time lows for the third-straight week as the 30-year FRM submerged below 3.80% following declining long-term Treasury bond yields.
The Freddie Mac survey showed the 30-year FRM averaged 3.79% for the week ending Thursday — the lowest rate ever recorded — inching down from the prior week’s record average of 3.83%. Last year at this time, the 30-year FRM averaged 4.61%.
The 15-year FRM, a popular refinancing choice, averaged 3.04%, slightly falling from last week‘s record that averaged 3.05%. A year ago, the average rate for a 15-year FRM was 3.80%.
Five-year, Treasury-indexed hybrid adjustable-rate mortgages averaged 2.83%, up from 2.81% the prior week and down from 3.48% a year earlier.
And one-year, Treasury-indexed ARMs averaged 2.78%, up from last week’s average of 2.73% and down from 3.15% last year.
“The European debt crisis overshadowed improving economic indicators for the U.S. and allowed Treasury bond yields and fixed mortgage rates to ease for another week,” said Frank Nothaft, Freddie Mac chief economist.
As an example, Nothaft noted that industrial production rose 1.1% in April — the largest gain since December 2010 — and consumer sentiment in May rose to its highest reading since January 2008, according to the University of Michigan.
“The economy added just 115,000 jobs in April, below the market consensus forecast and less than in March. And although the unemployment rate declined, it reflected fewer people actively seeking jobs, “Nothaft said.
Home loan analytics firm Bankrate, which surveys large banks, reported the 30-year FRM slipped to 3.97% from 4.02%, while the 15-year FRM remained at 3.2%. The 5/1 ARM fell to 3.0% from 3.1%.
jhilley@housingwire.com
