Freddie Mac: Mortgage rates continue to fall amid economic turmoil

Mortgage rates fell again during the most recent week, according to Freddie Mac.According to Freddie Mac's most recent Weekly Primary Mortgage Survey, interest rates for home loans continued to decline, reaching record lows, amid the nation's economic turmoil.The interest rate for 30-year fixed-rate mortgages averaged 4.32 percent for the week ending August 11, down from 4.39 percent last week and 4.44 percent last year. The decline now puts the interest rate at its lowest mark thus far in 2011. The rate for 15-year FRMs settled at 3.50 percent, which fell from 3.54 percent the previous week and 3.92 percent last year.”Renewed market concerns about the European debt markets led investors to shift funds into U.S. Treasuries, pushing long-term yields lower,” said Freddie Mac vice president and chief economist Frank Nothaft.The rates for adjustable-rate mortgages followed suit, as both declined during the most recent week. On average, borrowers paid an interest rate of 3.13 percent for five-year ARMs, which is down from 3.18 percent last week and 3.56 percent last year. The rate for one-year ARMs declined to 2.89 percent from 3.02 the previous week and 3.53 percent in 2010.With jobless claims declining nationwide and more positions being added in the region, the Houston real estate market may see an increased number of transactions soon, as more consumers look to take advantage of these low interest rates.Courtesy of 2M Realty News

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