In what's become a common theme in recent months, mortgage rates declined to new record lows, Freddie Mac reports, continuing to offer homebuyers substantial affordability.
Long-term fixed rates averaged 3.87 percent during the week ending February 2, the GSE notes in its Primary Mortgage Market Survey, while the average for short-term fixed rates was 3.14 percent. Both averages were the lowest ever recorded by Freddie Mac.
In addition to fixed rates falling, the averages for 1- and 5-year adjustable-rate home loans declined modestly during the week. According to the report, 1-year ARM rates averaged 2.76 percent during the period, while 5-year ARM rates averaged 2.8 percent.
"Most mortgage rates eased to all-time record lows this week as fourth quarter growth in the economy fell short of market projections," said Freddie Mac vice president and chief economist Frank Nothaft.
Mortgage records indicate home loan requests dropped in the Mortgage Banker's Association's latest application survey for the final week of January, which shows low rates don't appear to be enough to spur many to purchase properties early this year.