Mortgage Rates Hit New Lows

percent sign with a down arrowAs the country moves toward another recession, mortgage rates are doing their part to provide some relief.
According to Freddie Mac, each mortgage rate hit new lows for the year this week, and three of them posted new record lows.
Here’s the breakdown for the week ending August 11, 2011:
*30-year fixed-rate mortgage (FRM): Averaged 4.32 percent to hit a new low for the year. Last week, it averaged 4.39 percent; at this time last year, it averaged 4.44 percent.
*15-year FRM: Averaged 3.50 percent this week to hit a new all-time record low. Last week, it averaged 3.54 percent and a year ago at this time, it was at 3.92 percent.
*5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM): Averaged 3.13 percent this week, also a record low. Last week, it averaged 3.18 percent. Last year, it was at 3.56 percent.
*1-year Treasury-indexed ARM: Averaged 2.89 percent this week, once again, a new all-time low. Last week, it averaged 3.01 percent. Last year at this time, it averaged 3.53 percent.
“In its August 9th Federal Open Market Committee statement, the Federal Reserve noted that economic growth so far this year had been considerably slower than it expected and that overall labor market conditions had deteriorated in recent months, leading the Committee to conclude that an exceptionally low federal funds rate should be maintained at least through mid-2013. These developments helped to ease mortgage rates lower this week,” said Frank Nothaft, vice president and chief economist for Freddie Mac.
“Lower mortgage rates will help to maintain the high degree of home-buyer affordability in the market. The National Association of Realtors® reported that its affordability index over the past three quarters has indicated the highest affordability since the inception of the index in 1970.”
The conditions to buy are there. We just need more potential homeowners to pull the trigger and jump-start the housing recovery.