Mortgage rates continue to fall on weak economic data

While the 30-year, fixed-rate mortgage remained unchanged this past week, other mortgage rates hit all-time lows in the wake of an eight-week decline, Freddie Mac said Thursday. The government sponsored enterprise released its Primary Mortgage Market Survey, which shows the 30-year, FRM remaining at 4.22% this past week, down from 4.32% a year ago. Meanwhile, the 5-year ARM set a new record low, falling to 2.96%, compared to 3.07% last week and 3.54% a year ago. The 15-year, FRM hit 3.39%, down from 3.44% a week ago and 3.83% last year. The one-year ARM fell from 2.93% to 2.89%, compared to 3.50% last year. “Weaker economic data reports eased upward pressure on mortgage rates this week and kept them at or near all-time record lows,” said Frank Nothaft, vice president and chief economist for Freddie Mac. “The economy grew at a slower rate of one percent in the second quarter than was originally reported due to a smaller increase in inventories and fewer exports.” Bankrate noted a similar trend of falling rates in its weekly update.  According to Bankrate, the 30-year, FRM is now at 4.37%, down from 4.41% last week. The firm also noted adjustable-rate mortgages fell to record lows, with the 5/1 ARM declining to 3.07%, compared to 3.12% a week earlier. Meanwhile, the 15-year, FRM declined to 3.48% from 3.63%. “Many of the adjustable rate mortgages have initial interest rates so low they’re bordering on the ridiculous,” Bankrate said. “While these rates are plenty tempting for borrowers that don’t imagine being in the home more than 10 years, some of these loans are now priced in such a way that rates can only go up in the future. Be very sure about your timetable or your ability to bank the savings in the meantime, as rising monthly payments would be a virtual certainty in later years.” Write to: Kerri Panchuk.