Mortgage rates, for the most part, headed lower this week. Data from Freddie Mac shows that the 30-year fixed rate remained unchanged over the past week, while all other loan products in the GSE’s survey dropped. The 5-year adjustable-rate mortgage set a new all-time record low having fallen for the eighth consecutive week.
According to Freddie Mac’s market study, the average rate on a 30-year fixed mortgage held steady at 4.22 percent (0.7 point) for the week ending September 1.
To put the current numbers into perspective, over the past 12 months the 30-year rate has gone as high as 5.05 percent, hit in February 2011, and dropped to a five-decade low of 4.15 percent just two weeks ago.
The 15-year fixed rate averaged 3.39 percent (0.6 point) this week, down from 3.44 percent last week. Its 52-week high and low are 4.29 percent and 3.36 percent.
The 5-year adjustable-rate mortgage (ARM) hit its 52-week and all-time record low this week at 2.96 percent (0.6 point). Last week, it was averaging 3.07 percent. The 5-year ARMs has gone as high as 3.92 percent over the past 12 months.
The 1-year ARM slipped to an average of 2.89 percent (0.6 point) this week, down from 2.93 percent the previous week. It registered a 52-week high at 3.50 percent and a low of 2.86 percent.
“Weaker economic data reports eased upward pressure on mortgage rates this week and kept them at or near all-time record lows,” said Frank Nothaft, Freddie Mac’s chief economist.
Nothaft points out that the economy grew at a slower rate of 1 percent in the second quarter than was originally reported, while consumer confidence in August fell to its lowest reading since April 2009.
He says recent housing data also showed continued weakness, with the Case-Shiller index falling 5.9 percent between the second quarters of 2010 and 2011, and pending home sales declining again in July.
This article is from DSNews.com.