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Freddie Mac: 15-year mortgage drops below 3 percent

By Palm Beach Business.com

DELRAY BEACH — Bankers aren’t quite giving money away. But it’s getting awfully close as mortgage rates continue to plunge to new lows.

The headliner this week: the average 15-year, fixed rate mortgage dropped below 3 percent for the first time, to 2.97 with 0.7 point from last week’s 3.04 percent, Freddie Mac reported Thursday. Bankrate, meanwhile, had the 15-year dropping to 3.15 percent with 0.33 point from 3.19 percent a week before.

The 30-year fixed-rate mortgage typically used by homebuyers dropped to record lows in both surveys. Freddie Mac had the 30-year averaging 3.75 percent with 0.8 point compared to last week’s 3.78 percent.  The 30-year has been under 4 percent most of the year.

Meanwhile, Bankrate had the 30-year at 3.15 percent with 0.33 point, down from last week’s average of 3.19 percent.

"Market concerns over tensions in the Eurozone led to a decline in long-term Treasury bond yields helping to bring fixed mortgage rates to new record lows this week,” Freddie Mac Chief Economist Frank Nothaft said. “Compared to a year ago, rates on 30-year fixed mortgage rates are almost 0.9 percentage points lower which translates into nearly $1,200 less in annual payments on a $200,000 loan.”