WASHINGTON -- Fixed mortgage rates hit historic lows this week, with the 30-year home loan returning to its record low of 3.94%, amid troubling reports on the state of the housing market, according to Freddie Mac.
That’s down from 3.99% last week. The average for the 15-year, fixed-rate mortgage also fell to a record low of 3.21%, from 3.27% last week.
ARM rates were mixed, with the average for the five-year ARM dipping to 2.86%, from 2.93% last week; and the average for the one-year ARM inching up to 2.81%, from 2.8% in the prior week.
"Mortgage rates were at or near all-time record lows this week amid a rough environment for housing," said Frank Nothaft, Freddie Mac vice president and chief economist.
Nothaft noted that the Federal Reserve reiterated Monday that the U.S. housing market remained depressed.
"Over the first nine months of 2012, households lost almost $400 billion in property values which contributed to a $1.4 trillion reduction in overall net worth," Nothaft said.
