Freddie Mac reports lowest mortgage rates ever Financial Schools Reviews

Freddie Mac reports lowest mortgage rates ever

Written by Robert White on July 22, 2010 – 4:36 am

Freddie Mac reports lowest mortgage rates ever.
Consumers that are considering buying a home have literally never been in a better position to get a great deal on a mortgage, as rates have hit their lowest point ever this week.

According to the latest Primary Mortgage Market Survey from Freddie Mac, which tracks the rates for all types of mortgages across the country, APRs on both 30-year and 15-year fixed-rate home loans for the week ending July 22 declined to the lows never before recorded by the lending giant.

Freddie Mac said the rate for 30-year fixed-rate mortgages dropped to 4.56 percent, down from 4.57 percent the week prior, and well below the 5.2 percent APR from the same week in 2009. Similarly, 15-year fixed loans fell to 4.03 percent from 4.06 percent the week before. It has declined from 4.68 percent over the last year.

“The decline in mortgages rates over the past few weeks echoes the recent signs of weakening confidence in the strength of the economy, particularly the housing and consumer sectors,” said Frank Nothaft, vice president and chief economist for Freddie Mac. “For example, homebuilder confidence declined in July to lows not seen since April 2009, as measured by the NAHB/Wells Fargo Housing Market Index, following the large drop in housing starts reported for June.”

Adjustable-rate mortgages saw declines as well. The nationwide average for APRs on five-year ARMs declined to 3.79 percent from 3.85 percent a week before, and is down from 4.74 percent for the same week last year. Meanwhile, one-year ARMs hit 3.7 percent, falling from 3.74 percent last week. They had an interest rate of 4.77 percent this time last year.

According to the Los Angeles Times, worries about the economy have caused investors to get out of the mortgage market and into buying government securities.

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