Freddie Mac's Primary Mortgage Market Survey shows fixed mortgage rates followed bond yields lower to new all-time record lows. The 30-year fixed averaged 3.75% setting a new all-time record low for the fifth consecutive week. The 15-year fixed averaged an unprecedented 2.97% bringing three of the four benchmark mortgage rates below 3 percent for the first time in Freddie Macâ€™s history.
Market concerns over tensions in the Eurozone led to a decline in long-term Treasury bond yields helping to bring fixed mortgage rates to the new record lows. Compared to a year ago, rates on 30-year fixed mortgage rates are almost 0.9 percentage points lower which translates into nearly $1,200 less in annual payments on a $200,000 loan. Meanwhile, the S&P/Case-Shiller 20-city composite home price index (not seasonally adjusted) showed annual home-value gains in March in seven cities and a monthly gain in 12 cities.