Mortgage rates fell further this week, hitting fresh record lows, according to mortgage financier Freddie Mac.
The benchmark 30-year fixed averaged 4.78 percent for the week ending April 2, down from 4.85 percent last week and 5.88 percent a year ago.
While it was a new record low, the movement wasn’t substantial, and may indicate a bottoming out, as suggested last week by Freddie CEO John A. Koskinen.
“Mortgage rates followed other interest rates lower this week amid reports of slower economic growth” said Frank Nothaft, Freddie Mac vice president and chief economist.
“The final estimate of economic growth in the fourth quarter was revised lower and personal incomes fell 0.2 percent in February, below the market consensus.
The 15-year fixed averaged 4.52 percent, down from 4.58 percent last week and 5.42 percent a year ago.
Meanwhile, the five-year ARM slipped four basis points to 4.92 percent and the one-year ARM averaged 4.75 percent, down 10 basis points from last week. A year ago, the five-year averaged 5.59 percent and the one-year stood at 5.19 percent.
These interest rates are good for conforming mortgages with a loan-to-value of 80 percent, paying roughly 0.7 mortgage points.
“On a positive note, pending existing home sales rose 2.1 percent in February, marking the second increase in three months as potential homebuyers are taking advantage of historically low mortgage rates and falling home prices,” added Nothaft.
“Serving as a spur to sales, housing affordability reached an all-time high in February 2009 since the series’ inception in 1971.”
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