Another record low mortgage rate

Mortgage interest rates for 30-year, conforming, fixed-rate mortgages (FRMs), for the week ending July 8, averaged 4.57 percent, the latest all time low in Freddie Mac's 39-year rate survey.

by Broderick Perkins
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Deadline Newsroom - Mortgage interest rates for 30-year, conforming, fixed-rate mortgages (FRMs), for the week ending July 8, averaged 4.57 percent, according to Freddie Mac's weekly Primary Mortgage Market Survey.

That's an all time low in Freddie Mac's 39-year rate survey.

The July 8 average 30-year rate came with an average 0.7 point and was down just a tick from 4.58 percent last week. The rate averaged 5.20 percent a year ago.

"As long as deflation continues to override inflation as the predominant concern of the Fed and the demand for U.S. Treasuries is sustained by a flight to quality as a number of economies around the globe self-destruct, interest rates in the U.S. could remain low for the foreseeable future," said Nancy Osborne, chief operating officer of Erate.com, a Santa Clara, CA-based financial information publisher and interest rate tracker.

The 15-year FRM, this week, averaged 4.07 percent with an average 0.7 point, up from last week when it averaged 4.04 percent. A year ago at this time, the 15-year FRM averaged 4.69 percent, Freddie Mac reported.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.75 percent this week, with an average 0.7 point, the lowest its been since 2005 and down from last week's 3.79 percent average. A year ago, the 5-year ARM averaged 4.82 percent.

Freddie Mac reported the 1-year Treasury-indexed ARM averaged 3.75 percent this week with an average 0.7 point, down from last week's 3.80 percent average. Last year, at this time, the 1-year ARM averaged 4.82 percent.

"With mortgage rates falling to historic lows, refinance activity has been strong over the past three months," said Frank Nothaft, Freddie Mac vice president and chief economist.

"The Bureau of Economic Analysis reported that the effective mortgage rate of all loans outstanding was just below six percent in the first quarter of 2010, the lowest since the series began in 1977. Since the start of the second quarter, two out of three mortgage applications on average were for refinancing, according the Mortgage Bankers Association," Nothaft added.

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