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.