Home >> News >> Data >> Mortgage Rates Slam into New Record Lows as Europe Wobbles
Print This Post Print This Post

Mortgage Rates Slam into New Record Lows as Europe Wobbles

Mortgage rates continued to drop Thursday as the average 30-year fixed mortgage rate slammed into a new record low of 3.87 percent, according to ""Freddie Mac"":http://www.freddiemac.com/.

[IMAGE]

The GSE found that for interest rates for the 15-year loan fell to 3.13 percent, while the jumbo 30-year fixed mortgage declined to 4.47 percent, each setting record lows.

Adjustable-mortgage rates were mixed, with the average 3-year and 1-year ARMs inching higher to 3.07 percent. The popular 5-year and 1-year ARMs pulled back below the 3 percent threshold to a record low of 2.96 percent.

Instability in the European and global landscapes continues to play a major role in historically low mortgage rates.

""While Europe has staved off any immediate meltdown ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô at least temporarily ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô concerns about the U.S. economy continue to mount as hiring is slow and the manufacturing sector shows surprise weakness,"" ""Bankrate.com"":http://www.bankrate.com/, which tracks mortgage rates in a separate weekly survey, said in a statement. ""The prevailing nervousness in financial markets, surrounding both Europe and the global economic landscape, are keeping mortgage rates at ultra-low levels.""

The Web site also said that mortgage rates have not been above 6 percent since Nov. 2008. At that time, the average 30-year fixed rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86.

With the average rate now 3.87 percent, the monthly payment for the same size loan would be $939.90, a difference of nearly $302 per month for anyone refinancing now.

""Frank Nothaft"":http://www.freddiemac.com/bios/exec/nothaft.html, VP and chief economist with Freddie Mac, attributes less consumer spending as one of the causes of the continued rate decrease.

""Recent economic data releases of less consumer spending and a contraction in the manufacturing industry drove long-term Treasury bond yields lower over the week and allowed fixed mortgage rates to hit new all-time record lows,"" he said.

About Author: Sara Ortega

x

Check Also

FSG DS5 Loriot_featured

DS5: The Other Side of the Housing Boom

Janet Loriot, EVP, The Financial Institution Group, SWBC, speaks with DS5 about what happens when the market shifts.

Subscribe to MDaily

MReport is here for you to stay on top of important developments in the mortgage marketplace. To begin receiving each day’s top news, market information, and breaking news updates, absolutely free of cost, simply enter your email address below.