Economic uncertainties and unsettling employment news caused fixed-rate mortgages to once again find new all-time lows during the week ending July 12.
The average rate for a 30-year FRM fell to just 3.56 percent from 3.62 percent the previous week, according to a report from Freddie Mac. Meanwhile, the rate for a 15-year FRM averaged 2.86 percent. Mortgage records indicate this was slightly lower than the rate observed a week earlier, which stood at 2.89 percent. Both rates have now been below 4 percent for all but one week so far this year.
"Following a lackluster employment report for June, long-term U.S. Treasury bond yields eased somewhat this week allowing fixed mortgage rates to reach yet another record low," said Freddie Mac vice president and chief economist Frank Nothaft.
Meanwhile, the economy only added 80,000 new jobs in June. While this may seem like a significant improvement, it was not enough to change the unemployment rate, which remained at 8.2 percent, Nothaft added.
At the same time, the average rates for five- and one-year Treasury-indexed adjustable-rate mortgage were 2.74 and 2.69 percent, respectively.