I hate to keep saying the same thing over and over again, but, mortgage rates have reached another low mark in history. According to the Freddie Mac, the rate on the a 30-year fixed loan hit a low not seen since Harry S. Truman was president. The rate hit 3.94% but did not stay there for long. Currently rates are at 4.12%. The average rate on a 15-year fixed mortgage increased to 3.37%.
Rates have been below 5% for all but two weeks in the past year. Just five years ago they were at 6.5%. Mortgage rates are low because they tend to track the 10-year Treasury Note. The yield is up after falling steadily in previous weeks. The decline was due to investors being worried about the US economy and the debt crisis in Europe. Investors shifted their money away from stocks to the relative safety of Treasury’s.