The average rate on a 30-year fixed mortgage fell this week to a record low for the seventh time in eight consecutive weeks , according to the latest data released Thursday by Freddie Mac.
The benchmark 30-year fixed-rate mortgage slipped to 3.89 percent from 3.91 percent last week, according to the Bankrate.com national survey of large lenders. The mortgages in this week's survey had an average total of 0.43 discount and origination points.
This time a year ago, the mortgage index stood at 4.71 percent; four weeks ago, it came in at 3.97 percent.
The 15-year fixed-rate average remained below 3 percent, also dropping to a record-low 2.95 percent. Last week, it was 2.98 percent. A year ago, it was 3.69 percent.
Rates for adjustable-rate mortgages were down, too, with the one-year ARM decreasing to 2.74 percent and the five-year ARM falling to 2.77 percent.
"Treasury bond yields eased somewhat this week on some worsening economic indicators bringing mortgage rates back into record-low territory," said Frank Nothaft, Freddie Mac vice president and chief economist, in a statement.
The Mortgage Bankers Association reported Wednesday that the number of applications for mortgages fell.
The Market Composite Index, a measure of mortgage loan application volume, dropped 0.8 percent on a seasonally adjusted basis from one week earlier.
"Refinance volume increased again last week, but the composition of activity changed markedly," Michael Fratantoni, MBA's vice president of research and economics, said in a statement.
Despite rates remaining near all-time lows, conventional refinance application volume declined, and the [Home Affordable Refinance Program] share of refinance activity dropped to 20 percent. On the other hand, FHA refinance volume exploded to an all-time high, more than doubling over the week."
