Mortgage Rates Sink to New Record Low

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(Photo credit: Jerry Freeman/CNN)

Aaron Smith, CNNMoney

NEW YORK — Mortgage rates have fallen to a new record low, according to Freddie Mac, and the stagnant economy is to blame.

The 30-year fixed-rate mortgage dropped to an average of 3.67% in the week ended June 7, Freddie Mac said Thursday.

This is the sixth consecutive week of declines. The 30-year rate is down from 3.75% in the prior week, and well below from the year-ago rate of 4.49%.

Freddie Mac, one of the nation’s largest backers of mortgage securities along with Fannie Mae, also said the average rate for 15-year mortgages dropped to 2.94%. That’s compared to 2.97% in the prior week, and the year-ago average rate of 3.68%.

Rates have continued to slump in tandem with the U.S. economy. Freddie Mac attributed the rock-bottom rates to two recent economic reports: the anemic payroll growth of 69,000 jobs in May, which pushed the unemployment rate up to 8.2%, and the weaker-than-expected gross domestic product growth of a 1.9% annual rate in the first quarter.