Mortgage Rates Heading Back Toward Record Lows
Mortgage rates slipped lower for the second straight week, according to the latest survey from mortgage financier Freddie Mac.
The ever-popular 30-year fixed averaged 5.04 percent during the week ending February 19, down from 5.16 percent a week earlier and 6.04 percent a year ago.
“Mortgage rates followed bond yields lower this week as recent economic reports suggest the economy is still slowing, which reduces the future threat of inflation,” said Freddie Mac chief economist Frank Nothaft, in a statement.
“And consumer sentiment fell in February for the first time in three months to near its lowest level since May 1980, while industrial production slowed in January by more than the market consensus.”
A month ago, the 30-year fell to its lowest level on record, 4.96 percent. And it looks like we’re heading towards a new record, thanks in part to the Fed’s pledge to buy up more mortgage securities.
The 15-year fixed slipped to 4.68 percent, down from 4.81 percent last week and 5.64 percent this time a year ago.
Adjustable-rate mortgages got in on the action as well, with the five-year ARM falling to 5.04 percent from 5.23 percent and the one-year shedding 14 basis points to average 4.80 percent.
A year ago, the five-year averaged 5.37 percent and the one-year stood at 4.98 percent.
These rates are good for conforming loan amounts with a loan-to-value of 80 percent, though that may change with Obama’s mortgage plan.
Jumbo mortgages continue to price at least more than a percent higher than conforming loans.
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