Mortgages hit the lowest average interest rate on record, according to figures released Wednesday by Lending Tree. The company’s Weekly Mortgage Rate Pulse, a snapshot of the lowest and average rates available from Lending Tree lenders, reflected that average 30-year fixed home loan rates had dropped week over week to 4.35%, 3.25% for 15-year fixed, and 2.75% for a 5/1 adjustable rate mortgage (ARM).
In a statement, Cameron Findlay, chief economist of LendingTree.com, said, “Mortgage rates remain under pressure given continued weakening of economic conditions placing the Federal Reserve on alert to potentially enter into a second round of quantitative easing. Any government interaction at this juncture will force rates lower.”
Home loan rates used in the calculation, according to LendingTree, are reflective of actual rates offered to borrowers by lenders on the LendingTree network. The lowest rates reflect the payment of one discount point. Rates will vary based on the borrower's loan details and credit profile.