Rates Hit New Lows for Fifth Straight Week

Interest rates on 30- and 15-year fixed-rate mortgages hit new record lows again this week, according to the weekly rate survey by government-supported lender Freddie Mac.

The average rate on 30-year fixed-rate mortgages fell slightly to 4.56 percent this past week, down from 4.57 percent the week before. The average rate on 15-year fixed-rate loans declined to 4.03 percent, down from 4.06 percent the week before. Both include an average 0.7 origination and discount points.

The average rate on 5-year Treasury indexed adjustable rate mortgages fell to 3.79 percent with 0.6 points, down from 3.85 percent the week before.

It was the fifth consecutive week that at least two of the three rates set all-time lows in the Freddie Mac survey.

“The decline in mortgages rates over the past few weeks echoes the recent signs of weakening confidence in the strength of the economy, particularly the housing and consumer sectors,’ said Frank Nothaft, Freddie Mac chief economist. “For example, homebuilder confidence declined in July to lows not seen since April 2009, as measured by the NAHB/Wells Fargo Housing Market Index, following the large drop in housing starts reported for June.”

“Similarly, July’s consumer confidence dropped to the lowest level since August 2009, based on the Reuters/University of Michigan’s Consumer Sentiment index,” he continued. “We see these as part of the normal pattern of ebbs and flows in recovery and believe that there is sufficient momentum to carry the U.S. economy forward, albeit moderately.”

One year ago this week, average interest rates were 5.20 percent on 30-year fixed-rate loans, 4.68 percent on 15-year fixed-rate loans and 4.74 percent on 5-year ARMs according to the Freddie Mac survey.