Mortgage rates fell sharply this week amid signs of a weaker than expected economy, with the average for 15-year, fixed-rate home loans hitting a record low.
The average for 15-year, fixed-rate mortgages was 3.54 percent with an average 0.7 point, down from 3.66 percent a week ago, according to the weekly report from mortgage giant Freddie Mac. The previous record low of 3.57 percent was set in early November. A year ago, 15-year, fixed-rate mortgages averaged 3.95 percent.
Thirty-year, fixed-rate residential mortgages averaged 4.39 percent with an average 0.8 point, down from 4.55 percent a week ago. The average for 30-year, fixed home loans averaged 4.57 percent a year ago and fell to a record low of 4.17 percent in early November.
Frank Nothaft, Freddie Mac's chief economist, said treasury bond yields fell after signs the economy was weaker than expected.
"The economy grew 1.3 percent in the second quarter, which was below the market consensus forecast, and first-quarter growth was cut to less than a quarter of what was originally reported," Nothaft said. "In fact, the first half of thie year was the worst six-month period since the economic recovery began in June 2009."
Consumer spending fell 0.2 percent in June, representing the first decline since September 2009.
There were some positive signs in housing, however. Nationally, pending existing home sales rose for a second consecutive month in June and were up nearly 20 percent from June 2010 when the housing tax credits expired, Nothaft noted.
The average for 15-year, fixed-rate mortgages was 3.54 percent with an average 0.7 point, down from 3.66 percent a week ago, according to the weekly report from mortgage giant Freddie Mac. The previous record low of 3.57 percent was set in early November. A year ago, 15-year, fixed-rate mortgages averaged 3.95 percent.
Thirty-year, fixed-rate residential mortgages averaged 4.39 percent with an average 0.8 point, down from 4.55 percent a week ago. The average for 30-year, fixed home loans averaged 4.57 percent a year ago and fell to a record low of 4.17 percent in early November.
Frank Nothaft, Freddie Mac's chief economist, said treasury bond yields fell after signs the economy was weaker than expected.
Consumer spending fell 0.2 percent in June, representing the first decline since September 2009.
There were some positive signs in housing, however. Nationally, pending existing home sales rose for a second consecutive month in June and were up nearly 20 percent from June 2010 when the housing tax credits expired, Nothaft noted.
