Mortgage Rates Still Not Found a Bottom
Mortgage interest rates continued to fall this week as concerns about the continued sovereign debt crisis in Europe and a still stagnant economy in the U.S. forced down the yields and interest on U.S. Treasury notes.
According to Freddie Mac, interest on mortgage almost across the board fell, with only the rate on the hybrid five year adjustable mortgage remaining the same.
The mortgage giant reported that 30 year fixed rate mortgages averaged 4.12% with an average 0.7 point for the week ending today, down from last week when it averaged 4.22 percent. Last year at this time, the 30-year FRM averaged 4.35%, the firm reported.
Interest on 15 year fixed rate mortgages averaged 3.33% with an average 0.6 point, down from last week when it averaged 3.39%. A year ago at this time, the 15-year FRM averaged 3.83%
One year Treasury indexed mortgage averaged 2.84% this week with an average 0.6 point, down from last week when it averaged 2.89%. At this time last year, the 1-year ARM averaged 3.46%, Freddie Mac said.
Five year Treasury indexed adjustable mortgage rates remained the same at 2.96%, though this rate was significantly lower than last year's 3.46%.
"Market concerns over Eurozone sovereign debt default and a weak U.S. employment report for August placed downward pressure on Treasury bond yields and allowed fixed mortgage rates to hit new lows this week,” said Frank Nothaft, vice president and chief economist for Freddie Mac. “On net, the economy added no new jobs last month and was the weakest reading since September 2010. Meanwhile, the unemployment rate remained at 9.1 percent, marking its 31st consecutive month of being above 8 percent, the longest such stretch in 70 years.”