Mortgage Rates Continue to Set Record Lows
Mortgage rates continue to set new record lows this week, after second quarter GDP data was unveiled last week. According to Freddie Mac, the mortgage giant that tracks mortgage interest rates, the averag rate for a 30 year fixed rate mortgage for the week ending August 5th was 4.49 percent. Last week the 30 year averaged 4.54 percent and last year was 5.22 percent. The new data marks a new record low from Freddie, who has been tracking the data since 1971.
The average rate for a 15 year fixed rate for the week was reported as 4.95 percent, down from an even 4 percent a week ago and 4.63 percent last year at this time. The report indicates a new record for 15 year mortgages as well, which Freddie has tracked since 1991.
Annual revisions have cut the cumulative GDP in half over the last three years, reducing inflationary pressures thus allowing long-term mortgage rates room to ease. Five year Treasury-indexed hybrid ARMS (adjustable rate mortgages) averaged 3.64 percent for the week, down from 3.77 percent a week ago and 4.74 percent for the same week last year. This type of mortgage is at its lowest since Freddie began tracking it in 2005. The one year Treasury-indexed ARM, meanwhile, came in at 3.56 percent, down from 3.65 percent last week and 4.79 percent a year ago.