New Orleans Mortgage rates finally found a bottom this week, following six consecutive weeks of declines, but remained near record lows as worries about the European debt crisis continue to make bonds that fund most mortgages look like a safe bet to investors.
Rates on the 30-year fixed-rate mortgage (FRM) averaged 3.71 percent with an average 0.7 point for the week ending June 14, up from 3.67 percent last week but down from 4.5 percent a year ago, Freddie Mac said in releasing the results of its weekly Primary Mortgage Market Survey. Last week's rate for 30-year loans was an all-time low in Freddie Mac records dating to 1971.
For 15-year fixed-rate loans, rates averaged 2.98 percent with an average 0.7 point, up from 2.94 percent last week but down from 3.67 percent a year ago. Last week's rate for 15-year loans was a low in records dating to 1991.
Rates on the five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.8 percent with an average 0.6 point, down from 2.84 percent last week and 3.27 percent a year ago. Rates on five-year ARMs hit 2.78 percent during the week ending April 19, an all-time low in records dating to 2005.
For one-year Treasury-indexed ARMs, rates averaged 2.78 percent with an average 0.5 point, down from 2.79 percent last week and 2.97 percent a year ago. Rates on one-year ARMs hit an all-time low in records dating to 1984 of 2.72 percent during the week ending March 1.
A separate survey by the Mortgage Bankers Association showed demand for purchase loans for the week ending June 8 was up a seasonally adjusted 13 percent from the week before, and up 4 percent from a year ago.