Mortgage rates continued to decline last week with the 30-year, fixed-rate mortgage hitting a new all-time low of 3.34%.
That is down from 3.40% a week earlier and a drop from 4% last year, according to the latest Freddie Mac Primary Mortgage Market Survey.
Rates fell again to record lows as consumer confidence picked up and wholesale prices declined, the government-sponsored enterprise said.
The 15-year, FRM hit 2.65%, down from 2.69% a week earlier and a decline from 3.31% last year.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage went the opposite direction, edging up a bit to 2.74% from 2.73% a week earlier.
The one-year Treasury-indexed ARM averaged 2.55%, which is down from 2.59% a week earlier and is much lower than 2.98% last year.
“Fixed mortgage rates eased this week to record lows on indicators of higher consumer confidence and lower wholesale prices,” said Frank Nothaft, vice president and chief economist for Freddie Mac. “Consumer sentiment rose in November to the highest reading since July 2007 according to the University of Michigan. Meanwhile, the core producer price index fell 0.2 percent in October.”
Data from Bankrate also shows mortgages falling.
The 30-year, FRM fell from 3.57% to 3.54%, while the 15-year edged down from 2.88% to 2.87% this past week. The 5/1 ARM remained unchanged at 2.72%, Bankrate said.