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Mortgage Rates Zip Past All-Time Lows, Setting New Records

Concerns about the economy, European debt, and Chinese growth led mortgage rates to fall for the fourth straight week and hit all-time lows.

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Finance Web site ""Bankrate.com"":http://www.bankrate.com/ found the 30-year fixed-rate mortgage averaging 4.05 percent, down from 4.09 percent last week.

Bankrate.com also said that the 15-year loan set a new record low by falling to 3.25 percent, down from 3.28 percent, while 5-year and 1-year adjustable-rate mortgages (ARMs) each fell from 3.03 percent to 3.02 percent.

""Greg McBride"":http://www.bankrate.com/blogs/federal-reserve/about-greg-mcbride-cfa.aspx, a senior financial analyst with the Web site,

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attributes record lows this week to the first quarter's ""disappointing economic growth"" and elevated unemployment claims.

""The looming jobs report is likely to be the catalyst for further rate movement but the tepid theme of recent economic data is sure to keep a lid on bond yields and mortgage rates in the coming weeks,"" he adds.

Asked whether debt crises in Europe and growth problems in China contributed to the plunge for interest rates, McBride says that these issues ""are still, and will remain, lingering concerns for the financial markets.""

Mortgage giant ""Freddie Mac"":http://www.freddiemac.com/ likewise found record lows for mortgage rates this week, with the 30-year loan bottoming at 3.84 percent, down from an all-time low of 3.87 percent.

Freddie said that the 15-year fixed-rate mortgage set a new record by averaging 3.07 percent, with the 1-year ARM following suit by reaching 2.70 percent.

The five-year ARM stayed unchanged at 2.85 percent for Freddie.

""Signs of slowing economic growth and inflation remaining subdued allowed yields on Treasury bonds to ease somewhat and brought most mortgage rates to new all-time record lows this week,"" ""Frank Nothaft"":http://www.freddiemac.com/bios/exec/nothaft.html, VP and chief economist with Freddie, said in a statement.

About Author: Ryan Schuette

Ryan Schuette is a journalist, cartoonist, and social entrepreneur with several years of experience in real-estate news, international reporting, and business management. He currently lives in the Washington, D.C., area, where he freelances for DS News and MReport.
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