Mortgage Rates Fall to Lowest Levels on Record
Home mortgage rates in the U.S. fell to the their lowest levels since Freddie Mac began keeping records last week. The average rate for a 30-year fixed rate home loan fell 8 basis points to 4.01 percent in the week ended today from 4.09 percent the prior week, Freddie Mac said in a statement. The rate drops come in the wake of the Federal Reserve’s announcement of a plan to further reduce borrowing costs.
Last week’s 4.01 percent rate is the lowest figure ever recorded by Freddie Mac, which began tracking interest rates in 1971. The average 15-year rate declined to 3.28 percent from 3.29 percent in the previous week.
New loan application for purchases and refinances both rose last week as current and prospective homeowners sought to take advantage of the low borrowing costs. The Mortgage Bankers Association index of refinancing rose 11 percent in the week ended Sept. 23, while its index of purchase activity rose 2.6 percent.