Rates Continue to Fall Hitting New Lows Amid Economic Concerns

Just when it seemed like rates could not fall any further, ""Freddie Mac"":http://www.freddiemac.com/ reported fixed mortgage rates sunk even further for the week ending May 10.

[IMAGE]

The 30-year fixed-rate mortgage averaged 3.83 percent (0.7 point), down slightly from last week's average of 3.84 percent. A year ago at this time, the 30-year was 4.63 percent.

The 15-year fixed also moved downward, ending at 3.05 percent (0.7 point) this week. Last week it averaged 3.07 percent, and last year at this time it was 3.82 percent.

The 5-year ARM dropped to 2.81 percent (0.5 point) compared to 2.85 percent last week and 3.41 percent a year ago at this time.

[COLUMN_BREAK]

The 1-year ARM moved up to 2.73 percent (0.5 point). Last week the 1-year ARM averaged 2.70 percent and 3.11 percent a year ago.

""Following April's weaker than expected employment report, and the French and Greek election results raising concerns over the stability of the Euro currency zone, long-term Treasury bond yields declined allowing fixed mortgage rates to ease to new all-time record lows this week,"" said Frank Nothaft, VP and chief economist for Freddie Mac.

Nothaft also noted the 115,000 jobs the economy added in April, which was below the market consensus forecast and less the prior month.

""Bankrate.com"":http://www.bankrate.com/ also reported record low numbers after conducting its survey, which pulls data provided by the top 10 banks and thrifts in the top 10 markets.

The 30-year fixed fell to 4.02 percent, down from 4.05 percent last week.

The 15-year fixed hit a record low number at 3.20 percent, moving downward from the 3.25 percent reported last week.

For the first-time, the 5-year ARM fell below the 3 percent, averaging 2.99 percent this week compared to 3.02 percent last week.

The 3-year ARM tied with its record low of 3.06 percent.