Fixed Rates Move into Record-Low Territory

Mortgage rates continued to creep down near record lows this week, according to reports from ""Freddie Mac"":http://www.freddiemac.com/ and ""Bankrate.com"":http://www.bankrate.com/.

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Rates fell all around in Freddie Mac's Primary Mortgage Market Survey for the week ending May 2. According to the weekly survey, the 30-year fixed-rate mortgage (FRM) averaged 3.35 percent (0.7 point) this week, down from 3.40 percent last week. The all-time low average is 3.31 percent, set the week of November 21, 2012.

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Last year at this time, the 30-year FRM averaged 3.84 percent.

For the second week in a row, the 15-year FRM reached a new low, falling to 2.56 percent (0.7 point). Last week's average--the previous record--was 2.61 percent.

Adjustable rates also slipped, with the 5-year adjustable-rate mortgage (ARM) averaging 2.56 percent (0.5 point), down from 2.58 percent previously. The 1-year ARM also averaged 2.56 percent (0.3 point), falling from 2.62 percent before.

Meanwhile, Bankrate's weekly survey showed the 30-year fixed average falling to its second lowest level on record at 3.52 percent. The average 15-year fixed rate was 2.75 percent.

At the same time, the 5/1 ARM was down to 2.63 percent, Bankrate reported.

""Mortgage rates have fallen for seven consecutive weeks, to levels that are at, or near, record lows,"" Bankrate said in a release. ""With the Federal Reserve ""maintaining its current pace of bond-buying stimulus"":http://dsnews.comarticles/fomc-raps-obama-and-congress-as-it-continues-low-rates-bond-buy-program-2013-05-01 and even hinting that they could increase it should inflation move too low or economic growth stall out, there is every reason to believe that mortgage rates will remain at these ultra-low levels for some time.""