30-year mortgage rate hits record low of 3.75% (by Ruth Mantell)
WASHINGTON (MarketWatch) - Mortgage rates hit record lows in the week ending May 31, with the 30-year fixed-rate mortgage average declining to 3.75% from 3.78% in the prior week, Freddie Mac said Thursday in its weekly report. These data go back to 1971. The rate was 4.55% a year earlier. To obtain the latest 30-year rate, payment of an average 0.8 point was required, according to Freddie, a buyer of residential mortgages. "Market concerns over tensions in the Eurozone led to a decline in long-term Treasury bond yields helping to bring fixed mortgage rates to new record lows this week," said Frank Nothaft, Freddie Mac's chief economist. The 15-year fixed-rate mortgage also hit a record low in the most recent week, falling to 2.97% -- this is the first time the rate has reached below 3% -- from 3.04% in the prior week. These data go back to 1991. Meanwhile, the average rate on the 5-year Treasury-indexed hybrid adjustable-rate mortgage ticked up to 2.84% from 2.83%. The 1-year Treasury-indexed ARM remained at 2.75%.