Week After Week, Rates Continue to Break Record-Low Numbers

Just when it seemed like they could not fall any further, fixed-rate mortgages continued to drop, breaking record-low numbers once again, according to ""Freddie Mac's weekly mortgage market survey"":http://www.freddiemac.com/pmms/.

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""The European debt crisis overshadowed improving economic indicators for the U.S. and allowed Treasury bond yields and fixed mortgage rates to ease for another week,"" said Frank Nothaft, VP and chief economist for Freddie Mac.

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The 30-year fixed-rate mortgage averaged 3.79 percent (0.7 point) for the week ending May 17, slipping from last week's average of 3.83 percent. Last year at this time, the 30-year rate was 4.61 percent.

The 15-year fixed-rate mortgage ended the week at 3.04 percent (0.7 point), dropping from 3.05 percent last week. Last year at this time, the 15-year averaged 3.80 percent.

The 5-year ARM rose to 2.83 percent (0.6 point) from last week's average of 2.81 percent. A year ago, the 5-year ARM averaged 3.48 percent.

The 1-year ARM also moved up, averaging 2.78 percent (0.5 point) this week compared to last week's average of 2.73 percent. Last year at this time, the 1-year ARM averaged 3.15 percent.

""Bankrate.com"":http://www.bankrate.com/, which releases a weekly survey using data provided by the top 10 banks and thrifts in the top 10 markets, reported a record-low average for the 30-year fixed, which dropped below 4 percent.

The 30-year averaged 3.97 percent, down from 4.02 percent last week, while the 15-year rate remained unchanged from last week at 3.20 percent.

The 5-year ARM moved up slightly to 3 percent; last week, it averaged 2.99 percent.