Mortgage rates declined across the board with the average rate on a 15-year fixed mortgage dropping to a new low last week, and the rate on the 30-year fixed loan declined. Cheaper mortgages have encouraged more home-buying and refinancing.
The benchmark 30-year fixed mortgage rate falling to the second lowest level on record, 3.52 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.33 discount and origination points.
Mortgage buyer Freddie Mac says the average rate for a 15-year fixed mortgage slipped to 2.56%. That's the lowest on records dating to 1991. It fell from 2.61% last week, the previous record.
Adjustable rate mortgages were also lower, with the 5-year and 10-year ARMs dropping to new lows of 2.63 percent and 3.15 percent, respectively.
Low mortgage rates have helped turn around the housing market which began to show signs of improvement last year. Home sales and construction are up from a year ago, and prices are rising in most markets.
The number of Americans who signed contracts to buy homes rose in March to the highest level in three years, the National Association of Realtors said earlier this week.
According to the report, the average fee for 30-year mortgages edged down to 0.7 point from 0.8 point last week. The fee for 15-year loans was unchanged at 0.7 point.
The average rate on a one-year adjustable-rate mortgage fell to 2.56 percent from 2.62 percent last week. The fee for one-year adjustable-rate loans held steady at 0.3 point.