McLEAN, Va. – Home loan rates dipped again this week to near record lows, according to Freddie Mac.
The average for the benchmark 30-year, fixed-rate loan declined to 5.04% this week, from 5.16% last week; while the average for the 15-year, fixed-rate mortgage fell to 4.68%, from 4.81%.
Short-term rates also declined. Average rates on five-year ARMs declined to 5.04% from 5.23%; while rates on one-year ARMs fell to 4.8% percent from 4.94% last week.
"Mortgage rates followed bond yields lower this week as recent economic reports suggest the economy is still slowing, which reduces the future threat of inflation," said Frank Nothaft, chief economist for Freddie Mac.
"Meanwhile, the housing market is not doing any better," he said, noting new home starts fell to a record low in January.
"Although home builder confidence ticked up in February from a record low, builder expectations of sales over the next six months hit a record low since it was first published in January 1985," he said.
