The average rate on the 30-year fixed mortgage stayed at 4.22% for the second straight week, Freddie Mac said Thursday. The rate hit 4.15% two weeks ago, the lowest level on records dating back to 1971.
The average rate on the 15-year fixed mortgage fell to 3.39% from 3.44%. Two weeks ago it reached 3.36% — the lowest rate on records dating to 1991 and likely the lowest ever, according to economists.
Mortgage rates typically track the yield on the 10-year Treasury note. Yields rose this week as investors shifted money back to a more stable stock market.
Over the past year, the average rate on the 30-year fixed mortgage has been below 5% for all but two weeks. Yet home sales remain unhealthy. Sales of new homes are on pace to finish the year as the lowest on records dating back to 1963. The pace of re-sales is shaping up to the worst in 14 years.
Home prices haven’t fared much better. Since the peak of the housing boom in 2007, homes have lost nearly a third of their value. And they are expected to fall another 5 to 10% by year’s end, analysts say.
The average rate on a five-year adjustable-rate mortgage fell to 2.96%. That’s the lowest rate on records dating to January 2005. It was the fifth straight week of record lows for this type of loan.
The average rate for the one-year adjustable-rate mortgage fell to 2.89%. Its average of 2.86% two weeks ago was the lowest on records dating back to 1984.
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