I'm Lucas Wysocki with your weekly look at mortgage rates. Fixed mortgage rates fell to new record lows this week, with the benchmark 30-year fixed mortgage sinking to 3.70 percent, according to Bankrate.com’s weekly national survey. The average 15-year fixed mortgage rate plunged to 2.95 percent and the larger jumbo 30-year mortgage retreated to 4.32 percent, both record lows. Adjustable mortgage rates reset record lows also, with the 5-year and 7-year ARMs dropping to record lows of 2.69 percent and 2.87 percent, respectively.
The Federal Reserve's unveiling of a new stimulus program known as QE3, in which they'll be buying $40 billion of mortgage-backed securities each month on an open-ended basis exceeded the market's expectations and helped bring mortgage rates to new lows. Unhappy with the pace of economic recovery or job growth, the Fed felt compelled to take additional measures, even if those measures will be more effective at boosting the stock market and reducing interest rates than the stated intentions of lifting economic output and aiding job growth.
If you're looking to take advantage of the ultra-low mortgage rates, start by shopping around using the free search engine, right here at Bankrate.com. I'm Lucas Wysocki.