Mortgage rates continue drop, 30-year FRM hits new low

July 9th, 2012

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Transferees looking for a new home as part of a corporate relocation initiative may find an added affordability incentive attached to it, as a report from Freddie Mac explained that mortgage rates continue to decline to record-low levels.

The government-sponsored enterprise’s Primary Mortgage Market Survey for the week ending July 5 showed that 30-year fixed-rate mortgages averaged 3.62 percent, which was the 10th time in 11 weeks when it hit or surpassed its lowest-ever level. That figure was 3.66 percent during the previous week. The 15-year FRM averaged 2.89 percent for that week, which was slightly lower than the previous figure of 2.94 percent.

“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,” said Frank Nothaft, vice president and chief economist for Freddie Mac.

Rates are far lower than they were even one year previously. During the same week in 2011, 30-year fixed-rate loans averaged 4.6 percent.