Freddie Mac reports that long-term rates of credit mortgages slumped again this week with 15 and 30-year mortgages staying at their lowest levels since the agency monitored this type of data.
In the week ending September 2, the 30-year fixed-rate mortgage had averaged 4.32 percent, down from 4.36 during last week, and 5.08 percent from a year ago.
For the same period, 15-year fixed-rate credit mortgages declined to 3.83 percent, down from 3.86 percent a week ago and 3.52 percent last year.
“Fed Chair Ben Bernanke last week noted that with inflation expectations reasonably stable and the economy growing, inflation should remain near current readings for some time before rising slowly,” says Frank Nothaft, chief economist at Freddie Mac.
“As a result, mortgage rates eased further this week to new historic lows,” Nothaft said.
According to the Mortgage Bankers Association, applications for credit mortgages increased slightly last week, spurred by gains from homeowners refinancing existing mortgages, accounting for 83 percent of total mortgage applications.
