Mortgage Rates Streak Past Records to Hit New Lows

Lingering worries about the European debt crisis continue to drive investors to U.S. government bonds, sending fixed mortgage rates down to another record low.

[IMAGE]

According to ""Freddie Mac's"":http://www.freddiemac.com/ Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 3.49 percent (0.7 point) for the week ending July 26, down from 3.53 percent the previous week.

[COLUMN_BREAK]

At the same time in 2011, the 30-year FRM averaged 4.55 percent.

The 15-year fixed averaged 2.80 percent (0.7 point), a drop from 2.83 the week before.

Adjustable rate mortgages (ARMs) actually saw a small boost, with the 5-year ARM averaging 2.74 percent (0.6 point), an increase from 2.69 percent the previous week. The 1-year ARM averaged 2.71 percent (0.5 point), up from 2.69 percent previously.

""Market concerns over the strength of the economic recovery brought long-term Treasury yields to new lows this week, allowing fixed mortgage rates to reach record levels,"" said ""Frank Nothaft"":http://www.freddiemac.com/bios/exec/nothaft.html, Freddie Mac VP and chief economist.

""Bankrate.com"":http://www.bankrate.com/ also posted record results for the fourth week in a row, with the 30-year fixed falling to 3.75 percent from 3.78 percent the previous week. The 15-year fixed fell to 3.00 percent from 3.04 percent.

According to Bankrate.com's data, 5- and 1-year ARMs averaged 2.89 percent, the same as the week before.