WASHINGTON — Mortgage rates continue to hover just basis points above record lows, but the enticing APRs are doing little to boost home sales or refinancings.
Freddie Mac reported the average rate on the 30-year fixed loan fell to 3.98% from 4% the previous week, remaining just a few points above the record low of 3.94% earlier this year. The average rate on the 15-year fixed mortgage declined to 3.3% from 3.31 percent, just barely above its record low of 3.26%. Freddie Mac reported that rates have remained below 5% throughout all but two weeks of 2011. As the 10-year Treasury fell last week, mortgage rates could slide further.
Still, mortgage applications dropped 1.2% last week from the previous week, according to analysis released by the Mortgage Bankers Association.
Freddie Mac reported that the average rate on the five-year adjustable loan fell to 2.91% from 2.97%, while the one-year ARM declined to 2.71%.
