In the wake of a number of negative economic reports, mortgage rates edged lower for the third consecutive week, Freddie Mac reports.
According to the the government-sponsored enterprise, the rate for a 30-year fixed-rate mortgage edged closer to its record low, but stopped just short at 3.88 percent during the week ending April 12. Last year at this time the rate averaged 4.91 percent. Meanwhile, the rate for a 15-year FRM hit a new low of 3.11 percent, surpassing the previous record set in March when the rate averaged 3.13 percent.
"Fixed mortgage rates eased for the third consecutive week following long-term Treasury bond yields lower after a weaker than expected employment report for March," said Freddie Mac vice president and chief economist Frank Nothaft. "Although the unemployment rate fell to the lowest reading since January 2009, the overall economy added just 120,000 new jobs in March, nearly half that of the market consensus forecast."
As mortgage rates continue to trend lower, it could further add to the already high level of housing affordability. Prospective buyers should seriously consider making the transition to homeownership in 2012, as a number of industry experts anticipate property values to start appreciating at the beginning of next year.
