Downward Trend Continues for Mortgage Rates

Mortgage rates dipped this week--some of them hitting record lows--as unstable economic news left investors with visions of another potential economic slowdown.

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""Freddie Mac's"":http://www.freddiemac.com/ weekly Primary Mortgage Market Survey showed the 30-year fixed-rate mortgage (FRM) averaging 3.40 percent (0.8 point) for the week ending April 25, down slightly from 3.41 percent last week. Last year at this time, the 30-year fixed averaged 3.88 percent.

Meanwhile, the 15-year FRM averaged 2.61 percent (0.7 point), a new all-time record low. Last week's average was 2.64 percent. The previous record low for the 15-year fixed was 2.63 percent, first set the week of November 21, 2012.

In adjustable rates, the 5-year hybrid adjustable-rate mortgage (ARM) averaged 2.58 percent (0.5 point) this week, down from 2.60 percent last week, while the 1-year ARM averaged 2.62 percent (0.3 point), down from 2.63 percent previously. This week's 5-year ARM average was also a new low in that category, Freddie Mac reported.

""Bankrate.com"":http://www.bankrate.com/ also reported its sixth straight week of declines. According to the site's weekly national survey, the benchmark 30-year fixed rate retreated to a four-month low of 3.57 percent, while the 15-year fixed fell to a new record low of 2.80 percent.

The 5/1 ARM slipped slightly to 2.65 percent, meanwhile.

""Mortgage rates continue to trend lower as uneven economic data has raised concerns about another economic slowdown,"" Bankrate said in a release. ""The accompanying stock market volatility has also been good for mortgage rates by increasing demand for both government- and mortgage-backed bonds, to which mortgage rates are closely related.""