The key 30-year fixed mortgage rate flirted with its record low this week by sliding to 4.72 percent from last week’s 4.79 percent, according to Freddie Mac’s survey.
The survey’s all-time low for the long-term rate was set Dec. 3, 2009 at 4.71. Freddie Mac has been tracking the benchmark rate since 1971.
Meanwhile, the 15-year mortgage rate set a new low for the fourth consecutive week, with 4.17 percent for the week, down from 4.20.
A year ago, the 30-year was at 5.59 percent; the 15-year at 5.06 percent.
The 1-year Treasury-indexed ARM averaged 3.91 percent this week, down from last week when it averaged 3.95 percent. At this time last year, the 1-year ARM averaged 5.04 percent.
Bond yields are keeping pressure on the historically low mortgage rates, as loan applications for the purchase of a home have plummeted since the expiration of homebuyer tax credits April 30.
“Following a relatively weak employment report, bond yields fell this week and mortgage rates followed,” said Frank Nothaft, Freddie Mac vice president and chief economist. “Overall, the economy does show signs of improvement.
“The Federal Reserve reported in its June 9th regional economic review that the economy strengthened in all 12 of its Districts over April and May. It also noted that loan quality was stable or improving in most Districts, but remained an issue for banks with large exposure to real estate.”
