In the wake of a string of uncertain economic reports, mortgage rates once again reached new lows in the week ending July 26.
During this period, a 30-year fixed-rate mortgage averaged just 3.49 percent, falling from 3.52 percent a week earlier, according to a report from Freddie Mac. Meanwhile, the rate for a 15-year FRM averaged 2.8 percent, which was slightly less than the previous week when it averaged 2.83 percent.
"Market concerns over the strength of the economic recovery brought long-term Treasury yields to new lows this week allowing fixed mortgage rates to reach record levels," said Freddie Mac vice president and chief economist Frank Nothaft.
Earlier this month, consumer confidence took one of the biggest hits experienced since September 2011 earlier this month, which could have a damaging effect on the financial safety and soundness Americans have when making major investments, such as purchasing property.
Additionally, a thinning inventory also weighed heavily on homebuying activity. Although current mortgage rates provide a number of affordable options, the annualized sales rate fell to just 4.36 million units last month, according to the National Association of Realtors.