30-year mortgage rate falls to record-low 3.87% (by Ruth Mantell)
WASHINGTON (MarketWatch) -- With economic growth below expectations, mortgage rates hit record lows in the week ending Feb. 2, as the average rate on the 30-year fixed-rate mortgage fell to 3.87% from 3.98% in the prior week, Freddie Mac said Thursday in its weekly report on mortgage rates. The 30-year mortgage data go back to 1971. "Most mortgage rates eased to all-time record lows this week as fourth quarter growth in the economy fell short of market projections," said Frank Nothaft, Freddie Mac's chief economist. A year ago, the 30-year rate was at 4.81%. To obtain the latest rate, payment of an average 0.8 point was required, according to Freddie, a buyer of residential mortgages. A point is 1% of the mortgage amount, charged in prepaid interest. The 15-year fixed-rate mortgage also hit a record low, declining to 3.14% in the latest week from 3.24% in the prior week. The 15-year-mortgage data go back to 1991. Meanwhile, the average rate on the 5-year Treasury-indexed hybrid adjustable-rate mortgage hit a record low of 2.80%, down from 2.85%. The five-year-mortgage data go back to 2005. The 1-year Treasury-indexed ARM remained near its record low, rising to 2.76% in the latest week from 2.74% in the prior week.