Mortgage Rates Drop To Record Lows
WASHINGTON – Mortgage rates fell this week to the lowest level on record, giving home sales and refinancings a big boost, according to Freddie Mac.
The average rate for the 30-year loan fell from 4.75% last week to 4.69% this week, the lowest since Freddie Mac between tracking rates in 1971. The previous record of 4.71% was set in December.
The 15-year average fell from 4.20% to 4.13%, also a record low.
ARM rates also moved near record territory, with the average for the five-year ARM falling from 3.89% to 3.85% and the average for the one-year ARM dipping from 3.82% to 3.77%.
Mortgage rates have fallen over the past two months. Investors wary of the European debt crisis and the turbulent stock market have shifted money into the safety of Treasury bonds, driving down yields. Mortgage rates tend to track the yields on long-term Treasury debt.