I'm Greg McBride, senior financial analyst with Bankrate.com and here is your weekly look at mortgage rates.
For the 4th week in a row, mortgage rates set a new record low. The 30-year fixed mortgage rate fell to 4.32 percent, while the 15-year fixed rate dropped to 3.44 percent. On larger jumbo loans, the average 30-year fixed rate slid to 4.83 percent.
Even some of the adjustable rate products ventured into record territory. The average 5-year adjustable tied a record low of 3.07 percent, while the 7-year and 10-year adjustables slipped to 3.2 percent and 3.76 percent, respectively.
Yes, the U.S. economy remains weak with yet another reminder coming in the form of disappointing retail sales figures for August. But the latest drop in mortgage rates is also due to the ongoing debt issues on the other side of the Atlantic. The nervousness about whether Europe's debt issues will mushroom into a widespread financial panic has helped bring both bond yields and mortgage rates lower. Next week the Federal Reserve meets, and expectations call for another initiative designed, among other things, to keep mortgage rates low.
To find the lowest mortgage rates in your area, use the free search engine at Bankrate.com.
I'm Greg McBride.