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Freddie Mac, Bankrate: Mortgage rates sink again

By Palm Beach Business.com

DELRAY BEACH — More uninspiring economic data pushed mortgage rates to record lows once again, according to surveys released Thursday by Freddie Mac and Bankrate.

The 30-year fixed-rate mortgage dropped to an average of 3.62 percent with 0.8 point from last week’s 3.66 percent, according to Freddie’s Primary Mortgage Market Survey. Bankrate’s national survey put the 30-year at 3.87 percent with 0.424 point, down from last week’s 3.89 percent.

"Recent economic data releases of less consumer spending and a contraction in the manufacturing industry drove long-term Treasury bond yields lower over the week and allowed fixed mortgage rates to hit new all-time record lows,” Freddie Mac Chief Economist Frank Nothaft said.

“Growth in personal expenditures was revised downward to an annualized rate of 2.5 percent in the final GDP estimates for the first quarter of the year. In addition, monthly consumer spending in April was revised from a 0.3 percent gain to 0.1 percent and was unchanged in May. Finally, the Institute for Supply Management reported that manufacturing shrank in June, the first decline since July 2009."

Bankrate also cited continued concerns over Europe and the global economy as a whole as contributing to the low rates.

The 15-year fixed-rate also dropped in both surveys. Freddie Mac put the 15-year at an average of 2.89 percent with 0.7 point, down from 2.94 percent a week ago. Bankrate spotted the 15-year at 3.13 percent with 0.35 point, down from 3.16 percent a week ago.