Mortgage Rates Average New All-Time Record Lows
|May 3, 2012|
Average fixed-rate mortgages (FRM) hit new all-time record lows continuing to help keep homebuyer affordability high.
According to the latest Freddie Mac Primary Mortgage Market Survey, the 30-year fixed averaged 3.84 percent, down from its previous all-time record low of 3.87 percent last registered on Feb. 9, 2012. The 15-year fixed averaged 3.07 percent, also dropping below its previous all-time record low of 3.11 percent set April 12 of this year. The 1-year ARM also averaged a new all-time record low in the PMMS at 2.70 percent.
"Signs of slowing economic growth and inflation remaining subdued allowed yields on Treasury bonds to ease somewhat and brought most mortgage rates to new all-time record lows this week,” said Frank Nothaft, vice president and chief economist for Freddie Mac. “Real Gross Domestic Product rose at an annualized rate of 2.2 percent in the first quarter of this year, down from the previous quarter of 3.0 percent and below the market consensus forecast of 2.5 percent. In addition, the 12-month growth in the core price index of personal consumption expenditures was 2.0 percent in March which matches the Federal Reserve's implied inflation target."