Freddie Mac: A second straight week of record low mortgage rates

By E. Scott Reckard

May 10, 2012 12 AM PT

Mortgage rates have descended further into record low territory for the second straight week, with the average for a 30-year, fixed-rate loan dropping to 3.83% from 3.84% last week, Freddie Mac said.

The 15-year fixed loan also dipped to a record low, falling from 3.07% to 3.05%, according to Freddie Mac’s latest survey, released Thursday.

Borrowers would have paid an average of 0.7% in upfront lender fees to obtain the fixed-rate loans. People with solid credit and incomes who shop around or who pay additional discount points to lenders often can obtain slightly better rates than those quoted by Freddie Mac.

Adjustable loans were mixed. Loans with an initial five-year fixed rate were starting at an average of 2.81%, down from 2.85% a week ago, Freddie Mac said. The start rate on a loan that adjusts annually rose from 2.7% to 2.73%.

Freddie Mac, supported by taxpayer funds since it nearly collapsed in 2008, has tracked 30-year mortgage rates since 1971. It reports on what lenders are offering to solid borrowers who make 20% down payments or have at least 20% home equity if they are refinancing. The rates are for loans of up to $417,000.

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