Original Post Date: May 10, 2012
By: Justin T. Hilley
Fixed mortgage rates hit new all-time lows for the second straight week, following declining long-term Treasury bond yields.
The Freddie Mac survey showed the 30-year, FRM averaged 3.83% for the week ending Thursday — the lowest rate ever recorded — inching down from the prior week’s record average of 3.84%. Last year at this time, the 30-year FRM averaged 4.63%.
The 15-year FRM, a popular refinancing choice, averaged 3.05%, slightly falling from last week‘s record averaging 3.07%. A year ago, the average rate for a 15-year FRM was 3.82%.
Five-year, Treasury-indexed hybrid adjustable-rate mortgages averaged 2.81%, down from 2.85% the prior week and down from 3.41% a year earlier.
And one-year, Treasury-indexed ARMs averaged 2.73%, up from last week’s average of 2.7% and down from 3.11% last year.
“Following April’s weaker than expected employment report, and the French and Greek election results raising concerns over the stability of the Euro currency zone, long-term Treasury bond yields declined allowing fixed mortgage rates to ease to new all-time record lows this week,” Freddie Chief Economist Frank Nothaft said.
The economy added just 115,000 jobs in April, below the market consensus forecast and less than in March. And although the unemployment rate declined, it reflected fewer people actively seeking jobs, Nothaft said.
Home loan analytics firm Bankrate, which surveys large banks, reported the 30-year FRM slipped to 4.02% from 4.05%, while the 15-year FRM fell to 3.2% from 3.25%. The 5/1 ARM also fell to 2.99% from 3.02%.