Average fixed mortgage rates reached new all-time lows during the week ending July 5, as economic uncertainties caused investors to shy away from Treasury bonds.
The rate for a 30-year FRM averaged 3.62 percent, down from 3.66 percent a week earlier, according to a report from Freddie Mac. In addition, the average rate for a 15-year FRM fell to 2.89 percent from 2.94 percent during the same period.
"Recent economic data releases of less consumer spending and a contraction in the manufacturing industry drove long-term Treasury bond yields lower over the week and allowed fixed mortgage rates to hit new all-time record lows," said Freddie Mac vice president and chief economist Frank Nothaft.
Meanwhile, the rates for five- and one-year Treasury-indexed hybrid adjustable-rate mortgages averaged 2.79 and 2.68 percent, respectively.
With rates at record lows, brokers and lenders are encouraged to work closely with borrowers, whether it's to purchase property or restructure their mortgages into more favorable terms. Doing so could allow the housing market to rebound at a faster pace, which would be beneficial to millions of Americans.