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Mortgage Rates Drop Yet Again

by Chicago Agent

By Justin T. Hilley

Market concern over the strength of the economic recovery took Treasury yields to new depths, causing both 30- and 15-year fixed-rate mortgages to continue tumbling to historic lows.

The Freddie Mac survey showed 30-year FRM averaged 3.49 percent for the week ending Thursday, July 26, a record low from last week’s 3.53 percent. Last year at this time, the 30-year FRM averaged 4.55 percent. The 15-year FRM, a popular refinancing choice, also set a new record, averaging 2.8 percent, down from last week‘s average of 2.83 percent. A year ago, the average rate for a 15-year FRM was 3.66 percent.

Five-year, Treasury-indexed, hybrid adjustable-rate mortgages averaged 2.74 percent, also declining from 2.69 percent last week and falling from 3.25 percent a year earlier. And one-year, Treasury-indexed ARMs averaged 2.71 percent, up from last week’s 2.69 percent and down from 2.95 percent last year.

“The Conference Board Leading Economic Index showed the largest monthly decline in June since September 2011,” said Freddie Mac Chief Economist Frank Nothaft. “Existing home sales fell to 4.36 million homes (annualized) in June and represented the slowest pace since October 2011. Similarly, new home sales fell in June to their lowest level since January of this year.”

Home loan analytics firm Bankrate, which surveys large banks, reported the 30-year FRM fell to 3.75 percent from 3.78 percent, while the 15-year FRM dropped to 3 percent from 3.04 percent. The 5/1 ARM ticked remained at 2.89 percent.

 


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