Foster City, CA (PRWEB) May 16, 2012
Rates on the most popular types of mortgages retreated to new record lows, according to HSH.com’s Weekly Mortgage Rates Radar. The average rate for conforming 30-year fixed-rate mortgages fell by 6 basis points (0.06 percent) to 3.91 percent. Conforming 5/1 hybrid ARM rates decreased by 5 basis points, closing the Wednesday-to-Tuesday wraparound weekly survey at an average of 2.85 percent.
?A deepening economic slump overseas is forcing mortgage rates downward, as investors once again seek a haven for their money in the relative safety of U.S.-backed debt,? said Keith Gumbinger, vice president of HSH.com.
A worsening financial and political crisis in Greece has led to speculation that the country might exit from the eurozone. This would destabilize the currency and risk tipping Spain and Italy into deeper crises of their own.
“A troubled world is good for U.S. homebuyers and homeowners, at least for now,” added Gumbinger. “However, difficulties overseas are likely to slow our already muted pace of growth this summer, making it even harder to keep our own recovery moving forward. Ultimately, that benefits no one.”
Average mortgage rates and points for conforming residential mortgages for the week ending May 15 were, according to HSH.com:
Conforming 30-year fixed-rate mortgage