Mortgage rates at record lows as 30-yr at 3.79% (by Ruth Mantell)

WASHINGTON (MarketWatch) - Mortgage rates hit record lows in the week ending May 17, with the 30-year fixed-rate mortgage average falling to 3.79% from 3.83% in the prior week, Freddie Mac said Thursday in its weekly report. These data go back to 1971. The rate was 4.61% a year earlier. To obtain the latest 30-year rate, payment of an average 0.7 point was required, according to Freddie, a buyer of residential mortgages. The 15-year fixed-rate mortgage also fell to a record low, ticking down to 3.04% in the most recent week, compared with 3.05% in the prior week. These data go back to 1991. "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," said Frank Nothaft, chief economist at Freddie Mac. Meanwhile, the average rate on the 5-year Treasury-indexed hybrid adjustable-rate mortgage increased to 2.83% from 2.81%. The 1-year Treasury-indexed ARM rose to 2.78% from 2.73% in the prior week.