Mortgage Rates Fall to Record Lows Due to Disappointing Economic Data

Following a run of disappointing economic data – from housing, to jobs, to consumer spending – mortgage rates fell to record lows for the week ending June 24, 2010, Freddie Mac and Bankrate reported Thursday.

According to Freddie Mac’s Primary Mortgage Market Survey, 30-year fixed-rate mortgages averaged 4.69 percent with an average 0.7 point this week, down from last week’s average of 4.75 percent. This, Freddie Mac said, is the lowest rate recorded since it began collecting rates for 30-year fixed loans in April 1971.

Freddie Mac also reported a decline in 15-year fixed-rate mortgages, which averaged 4.13 percent with an average 0.6 point this week, falling from 4.2 percent the week prior. Again, Freddie Mac said this marks the lowest rate documented in the survey since it began tracking 15-year fixed-rate mortgages in September 1991.

“Mortgage rates . . . hit all-time record lows this week in our survey while activity in housing market slowed in May following the expiration of the homebuyer tax credit,” said Frank Nothaft, Freddie Mac VP and chief economist.

Bankrate reported the same trend in declining rates and agreed that the disappointing economic data has kept mortgage rates on a downswing…

Read the rest of DSNews.com’s article here.

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