Mortgage rates hit 50-year lows

Mortgage rates fell to 50-year lows during the week ending August 18.Freddie Mac's most recent Primary Mortgage Market Survey for the week ending August 18 revealed continued declines for the nation's home loan interest rates. Some rates averaged their lowest level in 50 years, while others hit all-time lows.According to the report, the average rate for 30-year fixed-rate loans settled at 4.15 percent, which passes the previous low of 4.17 percent, set during the week of November 11, 2010. The rate is down from an average of 4.32 percent last week and 4.42 percent during the same period last year. The interest rate for 15-year FRMs averaged 3.36 percent during the week, down from 3.50 percent the previous week and 3.90 percent last year.”The Federal Reserve's policy statement last week and ongoing market concerns over the European debt market carried momentum into this week allowing all mortgage products in our survey to reach all-time record lows,” said Frank Nothaft, Freddie Mac's chief economist and vice president. “For instance, 30-year fixed mortgage rates are now the lowest in over 50 years.”The average rates for adjustable-rate loans also declined. Five-year ARMs averaged 3.08 percent, down from 3.13 percent the week before and 3.56 percent last year. One-year ARMs settled at 2.86 percent, which was lower than the prior week's average of 2.89 percent and last year's 3.53 percent.With home loan rates continuing to reach new lows, more prospective homeowners may enter the market. A recent report already showed that more homes were sold in the Houston real estate market than the previous year.Courtesy of 2M Realty News

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