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Freddie Mac, Bankrate: Mortgage rates hit new lows

By Palm Beach Business.com

DELRAY BEACH — Continued concerns over the economy once again sent mortgage rates to record lows. Both the Freddie Mac and Bankrate surveys found the average 30-year fixed-rate mortgage dropping below records set only a week ago.

Freddie Mac’s Primary Mortgage Market Survey found the average 30-year mortgage at 4.09 percent with 0.7 point, down from 4.12 percent a week earlier. The Bankrate survey had the 30-year at 4.32 percent with 0.42 point, down from 4.35 percent a week ago.

The 15-year fixed-rate mortgage dropped as well. Freddie Mac found the 15-year averaging 3.30 percent with 0.6 percent, down from 3.33 percent a week earlier. Bankrate’s survey found the 15-year averaging 3.44 percent with 0.36 point, down from 3.48 percent a week ago.

"Continued investor concerns over the state of the European debt markets kept U.S. Treasury bond yields low and allowed mortgage rates to ease once more this week,” Freddie Mac Chief Economist Frank Nothaft said.  In comparison, the average interest rate of mortgages outstanding in the second quarter was 5.28 percent. By refinancing into today's 30-year fixed mortgage, homeowners could shave almost $1,715 a year in interest payments on a $200,000 loan.

"Apart from just fixed-rate mortgages, various other interest rates are at or near all-time historical lows as well. Both the 10-year constant-maturity Treasury bond and AAA-rated seasoned corporate bond yields were at 50-year lows over the week ending Sept. 9th. In addition, the 1-year constant-maturity bill, a popular index for ARMs, hit its nadir over the week of September 2nd since data began in 1952."

Bankrate’s mortgage experts generally expects to see mortgage rates to stay put for the next week.