Mortgage rates continue to test new depths, with the 30-year fixed rate hitting 3.53%, down from 3.63% the week prior, according to Freddie Mac. The fixed-rate 15-year mortgage also hit a new all time low, touching 2.83%, down from 2.86% the week prior.
"With little signs of inflation and the Federal Reserve's 'Operation Twist' keeping U.S. Treasury bond yields in check, fixed mortgage rates are remaining low and helping to stir the housing market," said Frank Nothaft, vice president and chief economist, at Freddie Mac.
As rates continued to fall, mortgage demand increased last week. Mortgage application volume jumped 16.9% from one week earlier, according to data released on Wednesday by the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending July 13, 2012. The Refinance Index increased 22% from the previous week and is at the highest level since mid-June, after falling 3% the week prior. MikeRead More »from Mortgage Rates Continue Slide: 30-Year at 3.53%