Mortgage rates inch lower on European debt concerns
Mortgage rates declined this past week as investors raced to Treasury bonds on concerns over the European debt crisis, Freddie Mac said Thursday. The government-sponsored enterprise released its primary mortgage market survey, which shows the 30-year, fixed-rate mortgage falling to 4%, the lowest reading since Oct. 6 when the rate hit a historic low of 3.94%. The 30-year FRM fell to 4% from 4.1% the prior week and 4.24% from a year earlier, Freddie said. The 15-year FRM hit 3.31%, down from 3.38% last week and 3.63% last year. The 5-year, Treasury-indexed hybrid-adjustable-rate mortgage averaged 2.96%, down from 3.08% last week and 3.39% a year earlier. The 1-year, Treasury-indexed ARM fell to 2.88% from 2.9% last week and 3.26% a year earlier. Bankrate also reported plunging mortgage rates, noting that the conforming 30-year, FRM fell to 4.23% from 4.33% last week. In addition, the average 15-year FRM dropped to 3.48% while the larger jumbo 30-year FRM dropped to 4.81%. The 5-year ARM dropped to 3.18%, while the 7-year ARM declined to 3.37%. Write to Kerri Panchuk.