NEW YORK (CNNMoney) -- 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.
"Interest rates have been on a one-way elevator trip to the cellar," said Mike Larson, housing market analyst for Weiss Research. "We have never seen rates this cheap."
Freddie Mac, one of the nation's largest backers of mortgage securities along with Fannie Mae, also said the average rate for 15-year mortgage -- which is popular for refinancing -- 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.