Mortgage rates hit new record lows to start May

May 3rd, 2012

mortgage-rates-recently-hit-new-lows

Freddie Mac recently released a report which showed that mortgage rates have continued to trend down, and have now hit new lows.

The Primary Mortgage Market Survey showed that 30-year fixed-rate mortgages averaged 3.84 percent, which was a drop from the 3.88 percent average the week before. In addition, the 15-year fixed rate mortgage average declined to 3.07 percent, which was down from the previous week’s figure of 3.12 percent.

“Signs of slowing economic growth and inflation remaining subdued allowed yields on Treasury bonds to ease somewhat and brought most mortgage rates to new all-time record lows this week,” said Frank Nothaft, vice president and chief economist for Freddie Mac.

Nothaft added that the slow growth of the U.S. gross domestic product, coupled with the continued growth of personal consumption expenditures, contributed to the mortgage rate decline.

The low interest rates provide relocation cost savings for those looking to buy a home as part of a corporate relocation. Locking in a fixed-rate can provide stable housing costs for employees in a new location.