Rate on US 30-year mortgage hits record low

Print
Email
|

by CHRISTOPHER S. RUGABER / AP Economics Writer

KING5.com

Posted on November 21, 2012 at 8:27 AM

Updated Wednesday, Nov 21 at 8:27 AM

WASHINGTON (AP) -- Average U.S. rates on fixed mortgages fell to fresh record lows this week, a trend that is boosting home sales and aiding the housing recovery.

Mortgage buyer Freddie Mac says the average rate on the 30-year loan dipped to 3.31 percent, the lowest on records dating back to 1971. That's down from 3.34 percent last week, the previous record low.

The average on the 15-year fixed mortgage also dropped to 2.63 percent. That's down from 2.65 percent last week and also a new record.

The average rate on the 30-year loan has been below 4 percent all year. It has fallen further since the Federal Reserve started buying mortgage bonds in September to encourage more borrowing and spending.

Print
Email
|