Fixed mortgage rates hit new record lows during the week ending May 3, giving prospective home buyers access to more affordable home loan terms, Freddie Mac reports.
According to the mortgage giant's Primary Mortgage Market Survey, the rate for a 30-year fixed-rate mortgage fell to 3.84 percent from 3.88 percent a week earlier. The previous all-time low for this rate was recorded in February 2012 at 3.84 percent. Analysts from Freddie claim that shifting economic factors were responsible for the drop in rates.
"Signs of slowing economic growth and inflation remaining subdued allowed yields on Treasury bonds to ease somewhat and brought most mortgage rates to new all-time record lows this week," said Freddie Mac vice president and chief economist Frank Nothaft.
Meanwhile, the rate for a 15-year FRM fell to 3.07 percent, which is also an all-time low. The previous record was reported last month at 3.11 percent.
As lending conditions continue to become more affordable for prospective borrowers, there could be a surge in home buying activity in the coming months as a number of households finally make the transition to homeownership.
