The 15-year fixed-rate mortgage rose 5 basis points, to 3.63 percent. The benchmark 5/1 adjustable-rate mortgage fell 3 basis points, to 3.12 percent.

This is the lowest rate on the 30-year fixed since September 1985. The previous record was 4.42 percent. Rates reached that level on Oct. 20, 2010, and Nov. 3, 2010.

The 5/1 ARM rate hit a record low this week. The adjustable rate hit a previous record last week when it reached 3.15 percent.

Many mortgage experts expected rates to rise this week. Since rates tumbled in recent weeks...normally, after sudden, sharp drops, mortgage rates are followed by a rebound. However, there is still a tremendous amount of volatility, driven by fear … driven by the unknown in Europe and the unknown as to whether we are going to into another recession.

Plenty of bad news to keep rates low

A series of economic indicators still points to a weak economy, and that is fueling investors' fear that the United States could go into recession again. That fear may help keep rates low until the end of the year.

This isn't anything like 2008 or 2009 because banks are better capitalized now, but we still have a lot of problems. Housing is still weak. Foreclosures were a little better but (mortgage) delinquencies are on the rise. Until unemployment improves, rates are likely to remain low.

One good economic sign wasn't enough Investors were offered a glimpse of hope Wednesday when the Commerce Department released a report on durable goods orders. The report showed orders for long-lasting goods such as cars and refrigerators rose by 4 percent, after falling 1.9 percent in June. That's the biggest increase since March and a better result than economists had expected. After the report was released, the stock market, which bled for days, improved slightly, a sign that investors seemed to be regaining confidence in riskier investments. When investors choose the stock market over Treasury bonds and demand for Treasuries decreased, bond yields increased. Mortgage rates often follow bond yields' direction.

But despite the short-lived optimism among investors, the report had no impact on rates.

New-home sales declined to the lowest level in five months, according to figures released this week by the Commerce Department. Purchases fell 0.7 percent to an annualized pace of 298,000 after a rate of 300,000 in June.

The percentage of U.S. home loans past due increased in the second quarter, according to a Mortgage Bankers Association survey released this week. The jump was mostly attributed to an increase in the number of loans overdue by 30 days, which likely resulted from homeowners losing their jobs or staying unemployed for long periods, analysts say.

Buyers on the sidelines Uncertainty, volatile markets and bad economic news have helped keep rates low, but it also has contributed to keeping nervous homebuyers on the sidelines. The volume of mortgage applications from home purchasers fell last week to a 15-year low, according to the MBA. The number of refinance applications also slowed as it decreased 1.7 percent compared to last week. Two weeks ago, refinances had surged more than 20 percent.

Lock now

Some mortgage analysts say they don't expect a spike in mortgage rates anytime soon, however, all it takes is "one major headline," for rates to shift direction.

My advice to you is to always do your research in regards the property you're looking to invest in. It's crucial to not only pay close attention to the market changes, but also specifically on the territory you're looking to invest.

Where rates are headed next week will depend much on what Federal Reserve Chairman Ben Bernanke says (or doesn't say) Friday when he makes a speech in Jackson Hole, Wyo.

Many investors will keep their eyes on Bernanke on Friday. However, no major announcements are expected during the speech and little impact is expected on mortgage rates.

That said, don't take a chance...

Don't try to "time the market". Rates are great and the sooner people refinance or purchase...the sooner they save.


The ever-changing real estate market is definitely bringing lots of opportunities to the "Homebuyer" - like you. 

Take advantage of the current low-rates and begin a more active role in the pursuing your dream of becoming a homeowner or lowering the amount of your existing mortgage payment!

Call: Atkins & Associates Professional Services for quotes & pre-qualifications. "We're HERE To HELP & We CARE".  (540) 286-2323