Industries Banking/Finance

Mortgage rates continue to drop

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Fixed-rate mortgages continued their drop to record lows in a weekly survey by McLean-based Freddie Mac.

Freddie Mac’s Primary Mortgage Market Survey has found that average interest rate for 30-year fixed-rate mortgage has matched or hit a new record low in 10 of the past 11 weeks.

The average rate for 1-year adjustable rate mortgages (ARM) also hit a new record low this week.

“Recent economic data releases of less consumer spending and a contraction in the manufacturing industry drove long-term Treasury bond yields lower over the week and allowed fixed mortgage rates to hit new all-time record lows,” Frank Nothaft, vice president and chief economist at Freddie Mac, said in a statement.

The Freddie Mac survey found:

• 30-year fixed-rate mortgages (FRM) averaged 3.62 percent with an average 0.8 point for the week ending July 5, down from last week when it averaged 3.66 percent. Last year at this time, the 30-year FRM averaged 4.60 percent. 

• 15-year FRM this week averaged 2.89 percent with an average 0.7 point, down from last week when it averaged 2.94 percent. A year ago at this time, the 15-year FRM averaged 3.75 percent.
• 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.79 percent this week, with an average 0.6 point, the same as last week. A year ago, the 5-year ARM averaged 3.30 percent.

• 1-year Treasury-indexed ARM averaged 2.68 percent this week with an average 0.5 point, down from last week when it averaged 2.74 percent. At this time last year, the 1-year ARM averaged 3.01 percent. 

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