Selective Homes Blog

This seems to be getting totally redundant, but mortgage rates hit new lows again this week, according to the latest survey from mortgage financier Freddie Mac.

Mortgage rates actually haven’t risen since mid-June, which would explain the handful of new records being set, but that also means all is not well in the economy.

“Interest rates for fixed mortgages and 5-year hybrid ARMs again broke record lows this week following reports of a sluggish job market,” said Freddie Mac chief economist Frank Nothaft in a statement.

“The Federal Reserve also noted in its August 10th policy statement that the pace of recovery in output and employment slowed since its last meeting in June.”

Remember, bad economic news generally leads to lower interest rates (how mortgage rates are determined).

During the week ending August 12, the 30-year fixed averaged 4.44 percent, down from 4.49 percent a week ago and 5.29 percent a year ago.

The 15-year fixed slipped to 3.92 percent from 3.95 percent, well below the 4.68 percent seen this time last year.

Meanwhile, the five-year adjustable-rate mortgage averaged 3.56 percent, down from 3.63 percent a week ago and 4.75 percent a year earlier.

Finally, the one-year ARM dipped to 3.53 percent from 3.55 percent, more than a point below the 4.72 percent average seen last year.

The interest rates above are good for conforming loan amounts at 80 percent loan-to-value; pricing adjustments may increase or lower the rate you ultimately receive.

Jumbo loans continue to price a half percentage point or more higher than conforming mortgages.