Mortgage rates plumb new depths
Mortgage interest rates dropped into unknown territory as concerns mounted that the U.S. and Europe may be facing another recession. The “feeling” had investors moving their funds out of stock markets and into the so called safety of government backed securities and bonds that fund most mortgages provided.
The latest mortgage market survey by Freddie Mac showed both fixed and adjustment rate loans continurd a 3-week slip to hit new interest rate lows. Interest rates are now nearly a full percentage point below highs seen at the first of 2011.
The Mortgage Bankers Association conducted a separate survey which suggested that low rates aren’t generating an increase in home loans and many who are eligible to refinance already have. Doubts about the economy made prospective home purchasers weary of applying for new home loans.
The 30-year fixed mortgage rate held steady at 4.14 percent—down from 4.32 percent the previous week (here’s the free of charge reverse mortgage calculator to check the numbers). This is a new all-time low for 30-year fixed mortgages according to Freddie Mac since the mortgage insurance giant began recording statistical data in 1971.