3.79: Yet Another Record Low

• May 17, 2012

by Shilpi Paul

Mortgage rates dropped to a new record low again this week.

This morning, Freddie Mac reported 3.79 percent with an average 0.7 point as the average on a 30-year fixed mortgage. Rates have been dropping all month: this is the third consecutive week that the average on 30-year mortgages hit a new record low.

From Freddie Mac vice president and chief economist Frank Nothaft:

The European debt crisis overshadowed improving economic indicators for the U.S. and allowed Treasury bond yields and fixed mortgage rates to ease for another week. For instance, industrial production rose 1.1 percent in April — the largest gain since December 2010 — and consumer sentiment in May rose to its highest reading since January 2008, according to the University of Michigan.

We have been saying this frequently in past weeks, but it bears repeating: the rates reported by Freddie Mac for 30-year mortgages are usually the best rates that the most qualified borrowers can get, so borrowers or those considering refinancing should not necessarily read this news and think that they can go out and get a loan with the quoted interest rate. Still, rates are at historical lows.

This article originally published at http://dc.urbanturf.com/articles/blog/3.79_yet_another_record_low/5553