Rates on 30-year fixed mortgages sunk to a two-year low this week, according to the latest weekly rate survey conducted by mortgage financier Freddie Mac.
According to Freddie, the average rate on a 30-year fixed mortgage dropped to 6.10% this week, the lowest level since October 13, 2005, when rates averaged 6.03%.
“Interest rates for U.S. Treasury securities have been drifting lower this month over market concerns that the housing slump and stress in the credit markets could slow future economic growth,” Frank Nothaft, Freddie Mac vice president and chief economist, said in a statement.
Average rates on 15-year fixed mortgages also dipped to 5.73% from 5.83% last week, marking the lowest rate since the week ended January 26, 2006 when it averaged 5.70%.
A year ago, 30-year mortgages averaged 6.14% and 15-year mortgages averaged 5.87%.
Conversely, rates on adjustable-rate mortgages continued to rise, with the average rate on a one-year ARM climbing one basis point to 5.43%.
The average five year ARM fell two basis points to 5.86%, which a year ago averaged 5.95%.
With regard to recently released market data indicating that unsold home inventory was growing and home prices were falling, Nothaft said, “The overall picture does, indeed, appear glum with no immediate relief in sight.”
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