Mortgage rates dive, nearly go below 4 percent again
Concerns over the European debt market led U.S. mortgage rates to nosedive to their second-lowest levels ever, Freddie Mac said yesterday. Freddie Macs Primary Mortgage Market Survey revealed that, for the week ending November 3, 2011, 30-year fixed-rate mortgages (FRMs) fell to an average of 4.00 percent after averaging 4.10 percent last week. This mark of 4.00 percent is just a few ticks higher than the all-time record low of 3.94 percent recording back in the week ending October 6, 2011, Freddie Mac said. One year ago at this time, 30-year FRMs averaged 4.24 percent. Market concerns over the European debt market drew investors to U.S. Treasury securities, lowering bond yields and mortgage rates, Frank Nothaft, vice president and chief economist, Freddie Mac, said in a statement. Average rates for both 15-year fixed mortgages and 5-year adjustable rate mortgages (ARMs) both fell sharply for the week ending November 3, 2011, as well. 15-year FRMs averaged 3.31 percent, down from 3.38 percent one week earlier, while 5-year ARMs recorded a huge drop to an average of 2.96 percent after coming in at 3.08 percent last week. Despite apprehension about the European market, Nothaft said that the U.S. economy is continuing its gradual recovery. The Bureau of Economic Analysis reported the economy grew 2.5 percent in the third quarter, the strongest pace in a year, led by a surge in consumer expenditures, Nothaft said.
Recent Comments