WASHINGTON – Fixed-rate mortgages continued their decline to record lows this week, Freddie Mac reported Thursday.
Reports of slower than expected growth in the private job market quelled inflation fears, making investors more willing to accept lower returns on mortgage securities and therefore the loans backing the bonds, according to Frank Nothaft, chief economist for Freddie Mac. “Low rates are helping to heal many battered local housing markets by increasing home-loan activity,” he said.
The average for the 30-year, fixed-rate loan declined from 4.49% last week, to 4.44% this week, its lowest since Freddie began keeping track in 1971. The average for the 15-year, fixed-rate mortgage also fell again, from 3.95%, to 3.92%, also its lowest ever recorded by Freddie.
ARM rates also fell further, with the average for the five-year ARM dipping from 3.63% last week, to a new low of 3.56%; and the average for the one-year ARM moving from 3.55%, to 3.53%.
