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Freddie Mac reports mortgage rates falling to record lows, while refinances are at an all-time high. (Paul J. Richards/Getty Images)
Mortgage rates across the U.S. fell again, continuing a several-weeks-long trend of record lows, mortgage finance company Freddie Mac reported on Thursday.
Both the 30-year and the 15-year fixed mortgages are at their lowest levels since Freddie Mac began recording rates in 1971 and in 1991, respectively.
The 30-year fixed-rate this week averaged 4.42 percent with an average 0.7 point add-on fee, down from 4.44 percent last week. A year ago, the 30-year averaged 5.12 percent.
The 15-year fixed-rate averaged 3.90 percent with an average 0.6 point add-on fee, down from 3.92 percent. Last year, it averaged 4.57 percent.
With Thursday's report, the 30-year fixed mortgage rate has fallen for nine weeks in a row and the 15-year has fallen for six consecutive weeks.
One-year adjustable-rate mortgages remained the same at 3.53 percent; a year ago the rate was 4.69 percent.
"Investors in long-term bonds appear very confident that inflation will remain in check, and as a result long-term fixed mortgage rates have continued to fall,” said Freddie Mac deputy chief economist Amy Crews Cutts.
The record low rates have prompted consumers to file for home-loan refinancing. Refinancing is reaching its highest levels in 15 months.
The Mortgage Bankers Association reported on Wednesday that overall home-loan refinancing increased 17.1 percent over the last week. Refinancing represents 81 percent of all home financing.
However, the housing market is still having difficulty resurrecting the sales it experienced before the current economic recession. Across the U.S., unemployment remains high, credit remains tight, and consumer confidence is still low.
"The housing market is in a lull following the expiration of homebuyer tax credits,” Crews said. “Single-family starts fell for the third straight month in July to an annual pace of 432,000 homes, the fewest since May 2009.”
