The cost of borrowing for a fixed-rate home loan has slipped to its lowest level of the year yet again. Fixed mortgage rates dropped this week amid weak economic and housing reports, marking the seventh consecutive week they've headed lower.
[IMAGE] Market data released Thursday by ""Freddie Mac"":http://www.freddiemac.com shows that the 30-year fixed-rate mortgage averaged 4.55 percent (0.6 point) for the week ending June 2. That's down from 4.60 percent last week. A year ago at this time, the 30-year rate was averaging 4.79 percent.
The 15-year fixed rate mortgage this week came in at an average of 3.74 percent (0.7 point). Last week it was 3.78 percent, and this time last year it was 4.20 percent.
Freddie Mac's ""weekly market survey"":http://www.freddiemac.com/pmms/ is based on data reported from approximately 125 lenders across the country. It shows that adjustable-rate mortgages (ARMs) didn't follow the same path as fixed-rates.
The 5-year ARM averaged 3.41 percent (0.6 point) this week in Freddie's study, the same as last week. A year ago, the 5-year ARM averaged 3.94 percent.
The 1-year ARM was reported to average 3.13 percent (0.6 point) this week, up from last week's average of 3.11 percent. At this time last year, the 1-year ARM was 3.95 percent.
According to ""Bankrate"":http://www.bankrate.com, which conducts a narrower rate study based on information from the 10 largest banks and thrifts in the 10 largest U.S. markets, the last time mortgage rates fell seven weeks in a row was in late 2008 after Lehman Brothers filed for bankruptcy and the U.S. financial system was on the verge of collapse.