Mortgage Rates Keep Falling To New Lows
WASHINGTON – Long-term mortgage rates slid again this week toward their lowest levels in more than five decades, with the average for the benchmark 30-year loan slipping to 4.56%, according to Freddie Mac.
The one basis point decline accompanied a three bp decline in the average for the 15-year mortgage, to 4.03%.
The last time home loan rates were lower was during the 1950s, when most mortgages lasted just 20 or 25 years.
ARM rates also continued to move lower, with the average for the five-year ARM dipping to 3.79% this week, from 3.85% last week; and the average for the one-year ARM inching down to 3.70% from 3.74%.
"The decline in mortgages rates over the past few weeks echoes the recent signs of weakening confidence in the strength of the economy, particularly the housing and consumer sectors,” said Frank Nothaft, chief economist for Freddie Mac. “For example, homebuilder confidence declined in July to lows not seen since April 2009, as measured by the NAHB/Wells Fargo Housing Market Index, following the large drop in housing starts reported for June.”