No progress toward resolving the European debt crisis, which has been helping to keep mortgage rates at record lows. Falling mortgage rates is also encouraging homeowners to refinance their mortgages. Refinancing increased 26.4% last week.
The average rate on a 30-year fixed-rate mortgage holds at record low of 4.18% for the 3rd week in a row.
While the 15-year fixed-rate mortgage rate rose 1 basis point to 3.39 percent.
The jumbo 30-year fixed sets another new low at 4.58%. The three year and five year ARMs both bounce off of last week's record lows, rising to 3.29% and 3.06%, respectively.
Despite record low interest rates, the housing market remains sluggish due to high unemployment and tight lending standards. If you do have good credit, a stable job ... now is a great time to purchase or refinance your home. You can search the best rates, right here at Bankrate.com. I'm Kristin Arnold.