Fixed mortgage rates hit new all-time lows this week as anemic economic growth and inflation took rates to unheard depths.
The Freddie Mac survey showed the 30-year, FRM averaged 3.84% for the week ending Thursday — the lowest rate ever recorded — inching down from the prior week's average of 3.88%. Last year at this time, the 30-year FRM averaged 4.71%.
The rate’s previous all-time record was 3.87%, registering on February 9.
The 15-year FRM, a popular refinancing choice, averaged 3.07%, slightly falling from last week when it averaged 3.12%. A year ago, the average rate for a 15-year FRM was 3.89%.
This rate’s former all-time low was 3.11%, registering on April 12.
Five-year, Treasury-indexed hybrid adjustable-rate mortgages averaged 2.85%, up from 2.78% the prior week and down from 3.15% a year earlier.
And one-year, Treasury-indexed ARMs averaged 2.85%, unchanged from last week and down from 3.14% last year. This rate is also a new low.
“Signs of slowing economic growth and inflation remaining subdued allowed yields on Treasury bonds to ease somewhat and brought most mortgage rates to new all-time record lows this week,” Freddie Chief Economist Frank Nothaft said in response to the new rate depths.
Gross domestic product rose at an annualized rate of 2.2% in the first quarter, down from the previous quarter of 3% and below the market consensus forecast of 2.5%.
Home loan analytics firm Bankrate, which surveys large banks, reported the 30-year FRM slipped to 4.05% from 4.09%, while the 15-year FRM fell to 3.25% from 3.28%. The 5/1 ARM also fell to 3.02% from 3.03%.