Long-Term Loan Rates Sink Further
June 7, 2012 by UPI - United Press International, Inc.
WASHINGTON (UPI) — Average mortgage rates for 30-year, fixed-rate loans fell to record lows for the sixth consecutive week, the Federal Home Loan Mortgage Corp. said Thursday.
Average rates for 30-year contracts dropped from 3.75 percent to 3.67 percent with 0.7 points, a record low. Thirty-year mortgage rates averaged 4.49 percent the same week of 2011.
Average rates on 15-year contracts hit a record low of 2.94 percent with 0.7 points, down from 2.97 percent a week ago, Freddie Mac said.
A year earlier, rates on 15-year contracts stood at 3.68 percent.
Five-year adjustable rate mortgages averaged 2.84 percent in the week with an average 0.7 points, unchanged from the previous week. Five-year adjustable rate loans averaged 3.28 percent a year earlier.
Average rates on one-year treasury-indexed adjustable mortgages rose from 2.75 percent to 2.79 percent with 0.4 points. A year ago, rates for these loans averaged 2.95 percent.
A sluggish recovery is keeping interest rates low, said Freddie Mac Vice President and Chief Economist Frank Nothaft.
“Long-term Treasury bond yields declined further following downwardly revised economic growth and job creation data,” he said.