Interest rates continued dropping last week, creating a housing market where buyers searching for cheap credit can find plenty of it.
The 30-year, fixed-rate mortgage averaged 3.53%, which is down from 3.56% a week earlier and 4.52% from last year. In addition, the 15-year, FRM averaged 2.83%, down from 2.86% a week earlier and 3.66% last year.
The 5-year, Treasury-indexed hybrid adjustable-rate mortgage averaged 2.69%, down from 2.74% a week earlier and 3.27% last year.
Meanwhile, the one-year, Treasury-indexed ARM also declined year-over-year to 2.69% from 2.97% last year.
"With little signs of inflation and the Federal Reserve’s 'Operation Twist' keeping U.S. Treasury bond yields in check, fixed mortgage rates are remaining low and helping to stir the housing market," said Frank Nothaft, vice president and chief economist for Freddie Mac. "For instance, the 12-month growth rate in the core consumer price index has been in a narrow 2.1% to 2.3% band over the past nine months ending in June."