Fifteen-Year Mortgage Hits a Record Low

Interest on 30-year fixed home loans averaged 4.79 percent this week — up slightly from 4.78 percent a week ago but still near historic lows. The year-ago average for the 30-year home loan stood at 5.29 percent. The average rate on 15-year fixed loans hit a record low of 4.2 percent, down from 4.21 percent; while interest on one-year adjustable-rate mortgages was unchanged at 3.95 percent, and the five-year ARM fell to 3.94 percent from 3.97 percent. “The economy grew at a slower rate than originally reported in the first three months of the year … which suggests inflation will remain tame in the near term,” says Freddie Mac chief economist Frank Nothaft, referring to revised data on U.S. gross domestic product. “As a result,” he says, “mortgage rates held at historic levels this week.” | Read More