4.32%: Mortage Rates Hit 2011 Low Again

• August 11th 2011

by UrbanTurf Staff

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For the second week in a row, long-term mortgage rates dropped to a new low for 2011, as Freddie Mac reported that the average on a 30-year fixed-rate mortgage decreased to 4.32 percent with 0.7 of a point, down from 4.39 percent last week. Last year at this time, the long-term rate averaged 4.44 percent.

From Freddie Mac vice president and chief economist Frank Nothaft:

“Renewed market concerns about the European debt markets led investors to shift funds into U.S. Treasuries, pushing long-term yields lower. Further, in its August 9th Federal Open Market Committee statement, the Federal Reserve noted that economic growth so far this year had been considerably slower than it expected and that overall labor market conditions had deteriorated in recent months, leading the Committee to conclude that an exceptionally low federal funds rate should be maintained at least through mid-2013. These developments helped to ease mortgage rates lower this week.”

While news of slowing economic growth is not good, the low interest rates are putting home ownership affordability at an all-time high. The Freddie Mac press release noted that the National Association of Realtors® reported that its affordability index over the past three quarters has indicated the highest affordability since it was created in 1970.

Here’s a look at the path of rates since last January:

This article originally published at https://dc.urbanturf.com/articles/blog/4.32_mortage_rates_hit_2011_low_again/3963.