Mortgage rates hit new record lows this week, according to the weekly survey most followed in the industry. Freddie Mac’s Primary Mortgage Market Survey® showed 30-year and 15-year fixed-rate mortgages reaching new interest rate lows. (The 30-year fixed-rate survey began in 1971, and the 15-year began in 1991.)
The 30-year fixed-rate mortgage averaged 4.49% with an average 0.7 point given to obtain that rate for the week ending August 5, 2010, down from last week when it averaged 4.54% percent. Last year at this time, the 30-year rate averaged 5.22%.
One local Flagstaff mortgage lender quoted 4.25% with zero points on Friday.
Poor economic news is good news for rates. Bad economic news came in waves this week. On Thursday, Gross Domestic Product statistical adjustments showed the economy grew more slowly in 2009 than previously reported. On Friday, unemployment news was worse than expected, with private sector jobs growing – but growing more slowly than anticipated by economist. Also, the census work this year was so much more efficient than usual that government census workers were laid off earlier than in past census years.
This mean there is not much likelihood of inflation which will relieve the pressure on long-term bond rates. That helps mortgage rates. The Federal Reserve may take action to stimulate the economy next week, but it’s unlikely the Fed will change its rates.
Here are the numbers from Freddie Mac’s mortgage rate survey for the week ending August 5, 2010:
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