30-Year, 15-Year Fixed Mortgage Rates at Record Lows

30-year fixed-rate mortgage (FRM) averaged 4.56 percent with an average 0.7 point for the week ending July 22, 2010, down from last week when it averaged 4.57 percent. Last year at this time, the 30-year FRM averaged 5.20 percent.

15-year FRM this week averaged a record low of 4.03 percent with an average 0.7 point, down from last week when it averaged 4.06 percent. A year ago at this time, the 15-year FRM averaged 4.68 percent.

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.79 percent this week, with an average 0.6 point, down from last week when it averaged 3.85 percent. A year ago, the 5-year ARM averaged 4.74 percent.

1-year Treasury-indexed ARM averaged 3.70 percent this week with an average 0.7 point, down from last week when it averaged 3.74 percent. At this time last year, the 1-year ARM averaged 4.77 percent.

Frank Nothaft, vice president and chief economist, Freddie Mac, notes: "The decline in mortgages rates over the past few weeks echoes the recent signs of weakening confidence in the strength of the economy, particularly the housing and consumer sectors. For example, homebuilder confidence declined in July to lows not seen since April 2009, as measured by the NAHB/Wells Fargo Housing Market Index, following the large drop in housing starts reported for June."

"Similarly, July's consumer confidence dropped to the lowest level since August 2009, based on the Reuters/University of Michigan's Consumer Sentiment index. We see these as part of the normal pattern of ebbs and flows in recovery and believe that there is sufficient momentum to carry the U.S. economy forward, albeit moderately."



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