WASHINGTON – Long-term mortgage rates continued to decline this week to their lowest levels on record, according to Freddie Mac.
The average for the 30-year, fixed-rate loan fell again from 4.12% last week to just 4.09% – the lowest since at least 1951; while the average for the 15-year mortgage slipped from 2.84% to 2.81% – the lowest on record.
“Continued investor concerns over the state of the European debt markets kept U.S. Treasury bond yields low and allowed mortgage rates to ease once more this week,” said Frank Nothaft, chief economist for Freddie Mac. “By refinancing into today’s 30-year fixed mortgage, homeowners could shave almost $1,715 a year in interest payments on a $200,000 loan.”
ARM rates were mixed, with the average for the five-year ARM rising slightly from 2.96% to 2.99% this week; and the average for the one-year ARM slipping from 2.84% to 2.81% – the lowest since 1984.
