Blogatative Easing: Ben Bernanke, Brookings blogger

Blogatative Easing: Ben Bernanke, Brookings blogger

Return to the scene of the crime?

Mortgage brokers: Update your stump speech on mortgage lending, Mr. President

NAMB says mortgage brokers have been at forefront of reform

Move lawsuit against Zillow clears contempt hurdle with settlement

Move declares "full steam ahead" in prosecution
Lending / The Ticker

Mortgage rates fall as long-term Treasury bond yields decline

/ Print / Reprints /
| Share More
/ Text Size+

Fixed mortgage rates fell in the week ending July 5 as consumer spending and declining manufacturing activity pushed long-term Treasury bond yields lower, Freddie Mac said in its latest primary mortgage market survey.

As those yields edged lower, it allowed fixed mortgage rates to hit new all-time record lows, Freddie said.

The average 30-year, fixed-rate mortgage fell from 3.66% last week to 3.62% in the most recent survey. In addition, the 15-year, FRM fell from 2.94% to 2.89%. A year ago, the same rate held at  3.75%.

Meanwhile, the 5-year Treasury-indexed ARM fell from 3.30% a year ago to 2.79% last week. In addition, the 1-year Treasury-indexed ARM fell from 2.74% last week to 2.68%. A year earlier the same rate hovered at 3.01%.

"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 Frank Nothaft, chief economist for Freddie Mac.

"Growth in personal expenditures was revised downward to an annualized rate of 2.5% in the final GDP estimates for the first quarter of the year. In addition, monthly consumer spending in April was revised from a 0.3% gain to 0.1% and was unchanged in May."

Manufacturing also slowed putting a damper on the nation's overall economic outlook.

Recent Articles by HousingWire Staff

Comments powered by Disqus