Long-term loan rates sink further

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WASHINGTON, June 7 (UPI) -- Average mortgage rates for 30-year, fixed-rate loans fell to record lows for the sixth consecutive week, the Federal Home Loan Mortgage Corp. said Thursday.

Average rates for 30-year contracts dropped from 3.75 percent to 3.67 percent with 0.7 points, a record low. Thirty-year mortgage rates averaged 4.49 percent the same week of 2011.

Average rates on 15-year contracts hit a record low of 2.94 percent with 0.7 points, down from 2.97 percent a week ago, Freddie Mac said.

A year earlier, rates on 15-year contracts stood at 3.68 percent.

Five-year adjustable rate mortgages averaged 2.84 percent in the week with an average 0.7 points, unchanged from the previous week. Five-year adjustable rate loans averaged 3.28 percent a year earlier.

Average rates on one-year treasury-indexed adjustable mortgages rose from 2.75 percent to 2.79 percent with 0.4 points. A year ago, rates for these loans averaged 2.95 percent.

A sluggish recovery is keeping interest rates low, said Freddie Mac Vice President and Chief Economist Frank Nothaft.

"Long-term Treasury bond yields declined further following downwardly revised economic growth and job creation data," he said.