In the wake of revived economic uncertainties, mortgage rates once again found new all-time lows during the week ending July 5.
Less consumer activity and a slow in the production rate in certain economic sectors caused the average rate for a 30-year fixed-rate mortgage to fall to 3.62 percent, according to a report from Freddie Mac. The previous week this rate was slightly higher at 3.66 percent. In addition, mortgage records show the rate for a 15-year FRM averaged 2.89 percent, down from 2.94 percent during the same period.
"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," said Freddie Mac vice president and chief economist Frank Nothaft.
Meanwhile, recent forecasts for the economy's gross domestic product by the end of the year also contributed to the decline. Specifically, an expected drop in consumer personal expenditures put the anticipated GDP growth rate at just 2.5 percent. While this expectation is promising, it is much slower than the pace prior to the recession.