For the third week in a row, fixed rate mortgages reached record lows, according to the latest data released by Freddie Mac.
The most popular mortgage, the 30-year-fixed mortgage, fell to 3.79 percent last week. The 30-year fixed mortgage has remained below 4 percent every week except one during 2012. A year ago, it averaged 4.61 percent.
The 15-year mortgage also reached a new record low of 3.04 percent. Last year at this time, the 15-year-fixed mortgage was around 3.80 percent.
Freddie Mac’s Vice President and chief economist, Frank Nothaft, claims that ongoing economic turmoil in Europe is partly responsible for the continuing slide in mortgage rates. He said, “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.” He also indicated that there were signs of progress in the home construction industry. The rate of construction on single-family homes in the nation picked up to its fastest pace in three months.