Mortgage rates drop again to start June

June 13th, 2012

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A report from Freddie Mac revealed that fixed-rate mortgage rates again declined to new-record lows, driving home affordability even higher for those in the midst of a corporate relocation process.

The government-sponsored enterprise's Primary Mortgage Market Survey for the week ending June 7 showed that the 30-year fixed-rate mortgage averaged 3.67 percent. This was markedly lower than the previous week's average of 3.75 percent. The average for 15-year loans also experienced a drop, as it fell to 2.94 percent from the previous figure of 2.97 percent.

"Fixed mortgage rates reached new record lows for the sixth consecutive week as long-term Treasury bond yields declined further following downwardly revised economic growth and job creation data," said Frank Nothaft, vice president and chief economist for Freddie Mac.

Employees may be able to find better deals for homes with the record-low mortgage rates, despite home prices rising again in many parts of the country. This is because the long-term affordability can have a more positive effect on employee finances if they take advantage of these rates before they rise again.