U.S. Mortgage Rates Fall With 30-Year at a Record-Low 3.49%

U.S. mortgage rates dropped, with 30-year loans reaching a record low for a sixth straight week, amid signs the housing recovery is slowing.

The average rate for a 30-year fixed mortgage fell to 3.49 percent in the week ended today, the lowest in Freddie Mac records dating to 1971, from 3.53 percent. The average 15-yearrate declined to 2.8 percent, also a new low, from 2.83 percent, the McLean, Virginia-based mortgage-finance company said today in a statement.

Sluggish employment growth and tight lending standards are limiting a recovery in the housing market even as mortgage rates continue to fall, according to Celia Chen, an economist at Moody’s Analytics Inc. in West Chester, Pennsylvania. Contracts to buy previously owned homes dropped 1.4 percent last month from a revised 5.4 percent gain in May that was less than initially reported, data from the National Association of Realtors showed today.

“It’s essential that the job market continues to add jobs,” Chen said. “If things don’t improve at least a little, yes, we do risk squashing this housing recovery.”

Private-sector employers added 84,000 jobs in June, the weakest in 10 months, and the unemployment rate stuck at 8.2 percent, U.S. Labor Department figures showed.

Purchases of new U.S. homes dropped in June from a two-year high, the Commerce Department reported yesterday. Sales of existing residences also declined, to an eight-month low, the National Association of Realtors reported.

Mortgage applications in the U.S. climbed last week as low borrowing costs spurred refinancing. An index of applications for refinancing increased 1.8 percent in the week ended July 20 from the previous week, the Washington-based Mortgage Bankers Association said yesterday. The group’s purchase gauge dropped 3.2 percent. By Noah Rayman - Jul 26, 2012

The views, opinions, positions or strategies expressed by the authors and those providing comments or external internet links are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of First Capital, we make no representations as to accuracy, completeness, current, suitability, or validity of this information and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. Any information provided does not constitute an offer or a solicitation to lend. Providing information to purchase does not guarantee a loan approval. All registered trademarks, copyright, images, or other items used are property of their respective owner and are used for editorial purposes only.

First Capital Mortgage is a subsidiary of PHH Home Loans LLC, a direct lender, Dept. of Corporations file #413-0713 NMLS#4256

Visit FirstCapital Online or call: 310-458-0010