Freddie Mac's Primary Mortgage Market Survey (PMMS) indicates average 30 year fixed rate mortgages dropped to another low of 4.44 percent with 0.7 points. This is another small decline from last week's 4.49 percent and well below this time last year when average 30 year fixed rate mortgages were 5.29 percent. The 15 year fixed rate mortgage average ticked down a little to 3.92 percent with 0.6 points from last week's 3.95 percent. Last year's 15 year fixed rate mortgage average was 4.68 percent.
[AD]Mortgage rates have been falling since spring as investors move their money to the safety of Treasury bonds, which lowers their yield. Rates for mortgages usually coincide with the movement in Treasury bond yields.
These record low mortgage rates have not helped increase home purchasing activity. The only bright spot is a modest increase in refinance activity. During the past week applications for home loans increased a very modest 0.6 percent, according to the the Mortgage Bankers Association.
While many media reports claim banks are not lending money, credit unions are rarely mentioned in the mainstream media. Credit Unions have money to lend. Check with your local credit union for your mortgage loan. You will get personal service and very competitive rates. And since your credit union is local, you can talk to someone who probably lives in the same town as you. Your credit union is not going anywhere, so you can get assistance even after closing on your home.