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15-year loans have been below 3 percent for 7 weeks

By Inman News®, Thursday, July 12, 2012.

Mortgage rates broke records again this week as fears that the European debt crisis will slow the global economy had investors moving money out of stocks and into safer investments like Treasuries and bonds that fund most mortgage loans.

Rates on 30-year fixed-rate mortgage averaged 3.56 percent with an average 0.7 point for the week ending July 12, down from 3.62 percent last week and 4.51 percent a year ago, Freddie Mac said in releasing the results of its weekly Primary Mortgage Market Survey. That’s a new all-time low in Freddie Mac records dating to 1971, and rates on 30-year loans have now been below 4 percent for 16 consecutive weeks.

For 15-year fixed-rate mortgages, rates averaged 2.86 percent with an average 0.7 point, down from 2.89 percent last week and 3.65 percent a year ago. That’s also an all-time low in records dating to 1991, and rates on 15-year loans have been below 3 percent for seven weeks.

Rates on five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) loans averaged 2.74 percent with an average 0.6 point, down from 2.79 percent last week and 3.29 percent a year ago. That’s an all-time low in records dating to 2005.

For one-year Treasury-indexed ARM loans, rates averaged 2.69 percent with an average 0.4 point, up from 2.68 percent last week but down from 2.95 percent a year ago. Last week’s rate for one-year ARMs was an all-time low in records dating to 1984.

A separate survey by the Mortgage Bankers Association showed that while demand for purchase loans was up a seasonally adjusted 3 percent during the week ending July 6 compared to the week before, purchase loan applications were down 3 percent from a year ago  Read More

Holly Duke Miller is an Associate Real Estate Broker with Liz Moore and Associates in Williamsburg, Virginia.  She is also a certified Senior Real Estate Specialist or SRES®.  She specializes in homes for sale in Williamsburg, James City County, York County, New Kent County, and surrounding areas.  She offers full service real estate support to both buyers and sellers of Williamsburg area homes and land.  As a native to the area, Holly is very knowledgeable about the local market and takes pride in helping each and every client reach their goals.  Whether you are considering buying a home in the Williamsburg area or have a property to sell, she looks forward to working with you.  Please contact her anytime at 757-254-4354 or email her at hollymiller@lizmoore.com for all of your Williamsburg and surrounding area real estate needs.

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