Contact us by phone: 561 450-8258. Contact us by email.

Freddie Mac, Bankrate find mortgage rates hitting lows

By Palm Beach Business.com

DELRAY BEACH — Weak economic news pushed mortgage rates to their lowest points of the year, according to both Freddie Mac and Bankrate surveys released Thursday.

Freddie Mac’s Primary Mortgage Market Survey  found the 30-year fixed-rate mortgage dropping to an average of 4.71 percent with 0.7 point, down from 4.78 percent a week earlier.  The Bankrate survey had the 30-year averaging 4.88 percent with 0.36 point, down from 4.95 percent a week earlier.

"Weaker economic data reports reduced Treasury bond yields and allowed mortgage rates to drift lower for the third consecutive week,” Freddie Mac Chief Economist Frank Nothaft said. “For instance, real economic growth in the first quarter fell short of the market consensus forecast and represented the slowest pace since the second quarter of 2010. In addition, both the manufacturing and service sectors exhibited growth at a slower rate in April.”

The poor news drove investors away from stocks and into the relative safety of Treasuries, driving down Treasury yields. Mortgage rates typically are tied to interest rates on long-term government bonds, particularly the 10-year bond.

Also from the surveys:

Freddie Mac found the 15-year averaging 3.89 percent with 0.7 point, the low for the year, while Bankrate found the 15-year averaging 4.05 percent with 0.35 point.

So where are mortgage rates heading over the coming week? Who knows? Bankrate’s panel of mortgage experts are split, with 39 percent expecting mortgage rates to remain more or less unchanged, 33 percent predicting an increase, and 28 percent forecasting further declines.