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Freddie Mac finds mortgage rates slipping to a new record

By Palm Beach Business.com

MCLEAN — Mortgage rates barely budged over the past week, but the little they did move was enough to set yet another record low, according to Freddie Mac.

The 30-year fixed-rate mortgage dropped to an average of 3.88 percent with 0.8 point from 3.89 percent, according to Freddie Mac’s, Primary Mortgage Market Survey. The slight drop would be otherwise inconsequential except for the fact that it is the lowest rate ever for the 30-year.
It’s also the seventh consecutive week below 4.00 percent for the 30-year.

"Mortgage rates were nearly unchanged this holiday week in lieu of a mixed bag of economic data reports,” Freddie Mac Chief Economist Frank Nothaft said. Retail sales gained only 0.1 percent in December, but the consumer sentiment climbed to the highest point in nearly a year.

Bankrate’s national mortgage survey likewise found little movement in rate; the 30-year held at the record low of 4.18 percent with 0.35 point for the third week in a row.

The lack of progress in resolving the European debt crisis continues to keep mortgage rates at or near their all-time lows, Bankrate said. Economic data has been better in recent months domestically, which normally would push rates upward. But the failure to resolve the crisis in Europe has kept demand for U.S. debt high and yields low, and translates to lower mortgage rates.