U.S. mortgage rates at new record lows-Freddie Mac

By Julie Haviv

NEW YORK, Oct 14 (BestGrowthStock) – U.S. mortgage rates reached
new record lows in the latest week, according to a Freddie Mac
survey released on Thursday, as weak economic data fueled
demand for safe-haven government debt.

Interest rates on U.S. 30-year fixed-rate mortgages, the
most widely used loan, averaged 4.19 percent for the week ended
Oct. 14, down from the previous week’s 4.27 percent and the
lowest on record, according to the survey.

The 30-year fixed-rate mortgage has been under 5 percent
for 23 weeks in row. Rates were also below their year-ago level
of 4.92 percent.

Freddie Mac, the second-largest U.S. mortgage finance
company, started the survey in April 1971.

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 earlier this
year, their impact on demand for home purchase loans has been
tepid. A weak jobs market and flailing economy continue to
weigh on consumer confidence.

Meanwhile, 15-year fixed-rate mortgages averaged 3.62
percent, down from 3.72 percent last week, the lowest since
Freddie Mac began surveying this loan type in 1991.

“September’s employment report held no big surprises to
financial markets, allowing long-term bond yields and fixed
mortgage rates to continue to ease,” Frank Nothaft, Freddie Mac
vice president and chief economist, said in a statement.

“As a result, both the 30-year and 15-year fixed mortgage
rates hit all-time record lows for the third consecutive week,”
he said.

Mortgage rates are linked to yields on Treasuries and
yields on mortgage-backed securities.
(Editing by Jeffrey Benkoe)

U.S. mortgage rates at new record lows-Freddie Mac