As the economy felt the stings of European debt concerns and investors rushed to U.S. Treasury’s mortgage interest rates plummeted to new lows this week.
The 30-year fixed-rate mortgage is down from 4.39% last week and 4.44% the previous year earlier to 4.32%–its lower point scale year to date.
At 3.5%, the 15-year fixed rate mortgage decreased nearly ½ point from last year’s levels. The 1-year ARM (adjustable rate mortgage) averaged at 2.89%.
The chief economist for Freddie Mac stated that mortgage rates may ease even further when the Federal Reserve Open Market Committee guaranteed that it would keep the federal funds rate at all-time lows through 2013 to help with economic growth.
An alternate site noted record lows for interest rates—Bankrate.com—and stated that credit rating downgrades to the county were good for current interest rates and opens the door for homeowners to get help today in this hard market to get into. Situations in the past may of made it so that many have missed their chance to purchase or re-finance last year, optimism for the future does seem better.