Mortgage rates fell to new lows for the second consecutive week, during the seven-day period ending May 10, Freddie Mac reports.
According to a recent survey from the mortgage giant, the rate for a 30-year fixed-rate mortgage fell to 3.83 percent from 3.84 percent the previous week. Last year at this time, the rate averaged 4.63 percent, but a number of mixed economic reports since then has kept the rate low.
"Following April's weaker than expected employment report, and the French and Greek election results raising concerns over the stability of the Euro currency zone, long-term Treasury bond yields declined allowing fixed mortgage rates to ease to new all-time record lows this week," said Freddie Mac vice president and chief economist Frank Nothaft.
Meanwhile, mortgage records indicate that the rate for a 15-year FRM averaged 3.05 percent, down from 3.07 percent a week earlier. The rates for FRMs have now been below 4 percent ever since the beginning of December, with the exception of one week earlier this year.
With mortgage rates reaching record lows, other factors, such as declining property values and rising median household incomes are projected to continue to keep the prospect of owning a home at an all-time high.