In Freddie Mac's results of its Primary Mortgage Market Survey®, average fixed mortgage rates again reached new record lows. The 30-year fixed-rate mortgage at 3.79 percent continues to remain well below 4 percent and 15-year fixed-rate mortgages are also slightly down at 3.04 percent.
According to Frank Nothaft, vice president and chief economist, Freddie Mac:
"The European debt crisis overshadowed improving economic indicators for the U.S. and allowed Treasury bond yields and fixed mortgage rates to ease for another week. For instance, industrial production rose 1.1 percent in April -- the largest gain since December 2010 -- and consumer sentiment in May rose to its highest reading since January 2008, according to the University of Michigan.
There was also good news in the home construction industry. Housing starts rose to an annualized rate of 717,000 homes in April, well above the market consensus forecast, and construction on one-family homes increased to its strongest pace in three months. Moreover, homebuilder confidence in May reached its highest reading since January 2008 according to the NAHB/Wells Fargo Housing Market Index."