How low can they go? Short-term mortgage rates dropped to new record lows this week, according to several weekly surveys released today. Freddie Mac said that 5- and 1-year adjustable-rate mortgages set new lows, while the the 30-year fixed-rate mortgage rose slightly for the third consecutive week. Here's where they landed:
* The 30-year averaged 4.24 percent with an average .8 points. Last year at this time it averaged 4.98 percent.
* The 15-year averaged 3.63 percent with an average of .7 points; a year ago it was 4.40 percent.
* The 5-year Treasury-indexed hybrid ARM averaged 3.39 percent with an average .6 point; a year ago it was 4.35 percent.
* The 1-year ARM averaged 3.26 percent with an average .7 point; a year ago it was 4.47 percent.
The declines come at a time when the Fed is trying to stimulate the economy - and the housing market - by essentially pumping cash into the economy to put downward pressure on long-term rates, causing much discussion about where rates will head next. For an interesting analysis of the situation - and what might be a bigger obstacle than mortgage rates when it comes to stimulating the housing market, go to www.bankrate.com/financing/mortgages/it-flows-downhill-from-fhfa/
