Mortgage Rates Fall to Under 3.5 Pct.

By Bill McGuire

Jul 26, 2012 10:21am

Those incredible shrinking mortgage rates fell once again in the past week to yet another record low of 3.49 percent for a 30-year fixed loan, Freddie Mac reported today.

The 15-year fixed-rate mortgage fell to 2.8 percent from 2.83 percent the previous week. The 30-year fixed was 3.53 percent the previous week, and had not dropped below 3.5 percent in at least 60 years.

“Market concerns over the strength of the economic recovery brought long-term Treasury yields to new lows this week allowing fixed mortgage rates to reach record levels,” Frank Nothaft, vice president and chief economist at Freddie Mac,  said in a statement.  ”The Conference Board Leading Economic Index showed the largest monthly decline in June since September 2011. Existing home sales fell to 4.36 million homes (annualized) in June and represented the slowest pace since October 2011. Similarly, new home sales fell in June to their lowest level since January of this year.”

Five-year adjustable rate mortgages are at 2.74 percent and one-year ARMs are 2.71 percent.

The Federal Reserve has been keeping interest rates near zero in an effort to stimulate the economy and has said the low rates will continue until at least though late 2014.

Rates vary by state and individual credit scores. Bankrate.com has a full listing of local mortgage rates as well as bank deposit rates.

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