(NEW YORK) — Those incredible shrinking mortgage rates fell once again in the past week to yet another record low of 3.49 percent for a 30-year fixed loan, Freddie Mac reported on Thursday.
The 15-year fixed-rate mortgage fell to 2.8 percent from 2.83 percent the previous week.
“Market concerns over the strength of the economic recovery brought long-term Treasury yields to new lows this week allowing fixed mortgage rates to reach record levels,” Frank Nothaft, vice president and chief economist at Freddie Mac, said in a statement. “The Conference Board Leading Economic Index showed the largest monthly decline in June since September 2011. Existing home sales fell to 4.36 million homes (annualized) in June and represented the slowest pace since October 2011. Similarly, new home sales fell in June to their lowest level since January of this year.”
Five-year adjustable rate mortgages (ARMs) are at 2.74 percent and one-year ARMs are at 2.71 percent.
The Federal Reserve has been keeping interest rates near zero in an effort to stimulate the economy and has said the low rates will continue until at least through late 2014.
Rates vary by state and individual credit scores. Bankrate.com has a full listing of local mortgage rates as well as bank deposit rates.
Copyright 2012 ABC News Radio
Brian Stelter, CNN Money
Tara Bench, KSL.com
Aaron Smith, CNN Newswire