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European debt, economic uncertainty keep mortgage rates low

By Palm Beach Business.com

DELRAY BEACH — Some disappointing economic data and the seemingly never-ending European debt saga combined to push mortgage rates down. Again. To yet another record low, according to Bankrate.

Freddie Mac’s Primary Mortgage Market Survey found the 30-year fixed-rate mortgage dropping to an average of 3.88 percent with 0.7 point from 3.90 percent a week ago. Freddie Mac’s all-time low for the 30-year: 3.87 percent.

Bankrate found the 30-year averaging 4.09 percent with 0.43 point, down from 4.10 percent a week ago.

Bankrate cited weaker than expected economic data has been more suspect and the European debt crisis as suppressing bond yields and mortgage rates to historic lows. Mortgage rates are closely related to yields on long-term government debt.

Freddie Mac cited investors waiting for the release of the Federal Reserve’s latest statement Wednesday afternoon as also affecting interest rate movement.

Also from the surveys: The average 15-year fixed-rate mortgage dropped to 3.12 percent with 0.6 point from 3.12 percent a week earlier, according to Freddie Mac. According to Bankrate, the 15-year dipped to 3.28 percent with 0.29 point from 3.32 percent a week earlier.