Thursday, August 4, 2011

Mortgage rates plummet to record lows as economy wobbles

by KERRI PANCHUK

Mortgage rates fell sharply this past week, hitting record lows, as bond yields declined and signs of a weakening economy dampened consumer sentiment further, according to Freddie Mac's latest Primary Mortgage Market Survey.

The 30-year, fixed-rate mortgage hit its lowest level of 2011, coming in at 4.39% compared to 4.55% last week and 4.49% a year ago. The 15-year FRM hit a historic low of 3.54%, down from 3.66% last week and 3.95% last year.

In addition, 5-year, adjustable-rate mortgages also reached a historic low of 3.18%, down from 3.25% last week and 3.63% last year.

The only mortgage rate that rose is the 1-year Treasury-indexed ARM, which hit 3.02%, up from 2.95% last week and down from 3.55% last year.

Bankrate also said mortgage rates plunged to a nine-month lows as a flurry of economic worries increased the odds of a double-dip recession.

The firm said these worries "had investors flocking into the safety of U.S. Treasury securities — their safe-haven status assured — which fueled the decline in mortgage rates."

Based on Bankrate's analysis, the 30-year FRM fell to 4.54%, down from 4.74% a week earlier. The 15-year FRM and 5/1 ARM fell to 3.83% and 3.34%, respectively.

URL to original article: http://www.housingwire.com/2011/08/04/mortgage-rates-plummet-to-record-lows-as-economy-wobbles

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