Record low mortgage rates just keep coming | DeadlineNews.Com ...

Another week of news about record low mortgage rates largely fell on deaf ears for consumers who can?t meet strict mortgage underwriting requirements to buy a home or refinance their mortgage.

The average interest rate on 30-year fixed rate mortgages (FRMs)fell to a record low of 3.87 percent, with an average 0.8 point for the week ending Feb. 2, down from 3.98 percent last week and 4.81 percent a year ago, according to Freddie Mac?s weekly Primary Mortgage Market Survey

?Most mortgage rates eased to all-time record lows this week as fourth quarter growth in the economy fell short of market projections?fixed residential investment increased for the third consecutive quarter and residential construction spending rebounded in December,? said Frank Nothaft, vice president and chief economist at Freddie Mac.

Slow economic growth predicted to be 3 percent or less this year should help keep rates low.

The Federal Reserve also recently announced it?s going to keep benchmark rates stable until 2014.

Michael Fratantoni, Mortgage Bankers Association?s research and economics vice president said yesterday, ?The Federal Reserve surprised the market last week by indicating that short-term rates were likely to stay at their current low-levels until the end of 2014. Longer-term treasury rates dropped in response, and mortgage rates for the week were down slightly as a result.?

He added, ?Although total application volume dropped on an adjusted basis relative to last week, refinance volume remains high, with survey participants reporting that the expanded Home Affordable Refinance Program (HARP) contributed to roughly 10 percent of their refinance activity.?

The average rate on the 15-year FRM, 3.14 percent with an average 0.8 point, was also down from 3.24 percent last week and 4.08 percent last year at this time.

The 5-year Treasury-indexed hybrid adjustable rate mortgage (ARM) averaged 2.80 percent this week, with an average 0.7 point, down from 2.85 percent last week. The 5-year ARM averaged 3.69 percent a year ago.

Finally, for the week ending Feb. 2, Freddie Mac reported the 1-year Treasury-indexed ARM averaged 2.76 percent this week, with an average 0.6 point, up from 2.74 percent last week, but down from 3.26 percent a year ago.

Source: http://www.deadlinenews.com/2012/02/02/record-low-mortgage-rates-just-keep-coming/

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