Mortgage rates reach new lows over European debt concerns
- September 15, 2011
Mortgage rates continued to fall this week to record lows amid investors’ concerns about European debt, according to Freddie Mac.
The average 30-year, fixed-rate mortgage was 4.09 percent this week, down from 4.12 percent the previous week. The average 15-year, fixed-rate mortgage was 3.3 percent, down from 3.33 percent last week.
A year ago, the average 30-year, fixed-rate mortgage was 4.37 percent while the average 15-year, fixed-rate mortgage was 3.82 percent.
“Continued investor concerns over the state of the European debt markets kept U.S. Treasury bond yields low and allowed mortgage rates to ease once more this week,” Freddie Mac chief economic Frank Nothaft said in a statement. “In comparison, the average interest rate of mortgages outstanding in the second quarter was 5.28 percent. By refinancing into today’s 30-year fixed mortgage, homeowners could shave almost $1,715 a year in interest payments on a $200,000 loan.”