Mortgage rates reach new lows

By Gary Linnell

ProWEB Wire (Industry News)

Mortgage rates reached new lows in the latest week, as a soft economy and high unemployment rates continue to take their toll, according to Freddie Mac.

The average 30-year mortgage rate fell to 4.44 percent for the week ended August 12, the lowest rate since Freddie Mac began keeping records in 1971.

Meanwhile, 15-year rates fell 0.03 percentage point to 3.92 percent, the lowest since records began in 1991, and five-year Treasury-indexed adjustable-rate mortgages (ARMs) also set a record low at 3.56 percent.

According to Frank Nothaft, chief economist at Freddie Mac, "Interest rates for fixed mortgage and five-year hybrid ARMs again broke record lows this week following reports of a sluggish job market."