Mortgage rates seem to be hitting new record lows on a weekly basis. And this week wasn't any exception, as reports released Thursday by ""Freddie Mac"":http://www.freddiemac.com/ and ""Bankrate"":http://www.bankrate.com/ showed yet another decline in rates for the week ending August 4, 2010.[IMAGE]
According to Freddie Mac's ""Primary Mortgage Market Survey"":http://www.freddiemac.com/pmms/release.html?week=31&year=2010, 30-year fixed-rate mortgages averaged 4.49 percent with an average 0.7 point this week, falling from 4.54 percent last week. In addition, Freddie Mac said 15-year fixed-rate mortgages averaged a record low of 3.95 percent with an average 0.6 point, edging down from last week's average of 4 percent.
""And yet again, interest rates for fixed-rate mortgages . . . fell to all-time record lows this week following the second quarter GDP release,"" said Frank Nothaft, VP and chief[COLUMN_BREAK]
economist at Freddie Mac. ""Annual revisions cut the cumulative GDP growth in half over the past three years ending in the first quarter of 2010 from 1.4 percent to 0.6 percent. This reduces inflationary pressures and allows longer-term rates room to ease.""
Bankrate reported the same trend of ever-declining mortgage rates, pointing to worries about weak economic growth as the cause for this continued drop. The tracking company said recent speculation that the Federal Reserve may resume measures such as purchasing mortgage-backed bonds or government debt Ã¢â‚¬" perhaps as soon as next week's FOMC meeting Ã¢â‚¬" helped bring rates lower this week.
According to its ""weekly national survey"":http://investor.bankrate.com/releasedetail.cfm?ReleaseID=496754, 30-year fixed-rate mortgages averaged 4.66 percent with an average 0.42 point this week, inching down from 4.71 percent one week earlier. Additionally, Bankrate said 15-year fixed-rate mortgages averaged 4.11 percent with an average 0.3 point, dropping from last week's average of 4.17 percent.
Complementing Bankrate's survey is its weekly Rate Trend Index, in which mortgage experts predict which way rates are headed over the next week. According to the panelists, mortgage rates will likely stay flat, as 61 percent said rates will remain more or less unchanged over the next seven days. Just 28 percent said mortgage rates will increase over the coming week, and a mere 2 percent said rates will decrease further.