U.S. mortgage rates reached new record lows in the latest week as economic data raised the appeal of safe-haven government debt, according to a survey released on Thursday by Freddie Mac, the second-largest U.S. mortgage finance company.
While rock-bottom rates offer a glimmer of hope for a housing market struggling to find footing in the aftermath of the expiration of popular home buyer tax credits, their impact on home loan demand has been tepid. A weak jobs market and flailing economy continue to weigh on consumer confidence.
Interest rates on U.S. 30-year fixed-rate mortgages, the most widely used loan, averaged 4.27 percent for the week ended October 7, down from the previous week’s 4.32 percent and the lowest on record, according to the survey.
Rates were also below their year-ago level of 4.87 percent. Freddie Mac started the survey in April 1971.
Meanwhile, 15-year fixed-rate mortgages averaged 3.72 percent, down from 3.75 percent last week, the lowest since Freddie Mac began surveying this loan type in 1991.
Full story: Mortgage Rates at Record Lows – ABC News