US mortgage rates decline to lowest on record-Freddie

By Al Yoon

NEW YORK, Aug 26 (BestGrowthStock) – U.S. mortgage rates fell in
the latest week to the lowest on record and posted their ninth
drop in the last ten weeks, Freddie Mac said on Thursday.

The average rate on U.S. 30-year fixed-rate mortgages, the
most widely used home loan, averaged 4.36 percent in the week
ended Aug. 26, down from 4.42 percent in the previous week and
5.14 percent from a year earlier, according to the survey by
Freddie Mac, the second-largest provider of funding for
residential loans. It began began the survey in 1971.

The rate followed recent declines in U.S. Treasury yields
after a wave of reports suggested the economic recovery was
faltering.

Housing data this week showed home resales fell in July
beneath already bearish expectations to their slowest pace in
15 years, while new home sales slumped last month to the worst
level since the U.S. Commerce Department began collecting the
data in 1963.

Home refinancings have picked up as mortgage rates fell,
but have not kept the same pace as when costs declined in
previous years. Tight credit standards and loss of homeowner
equity during the housing slump have limited access.

Bottlenecks and capacity constraints have also kept big
lenders from lowering rates in line with other interest rates,
analysts at Amherst Securities Group said in a research note.

Fifteen-year fixed-rate mortgages averaged 3.86 percent,
down from 3.90 percent last week.

Fifteen-year mortgages have been become a popular
refinancing option for borrowers that find they can shorten the
terms of their loans with little increase in mortgage payment.
(Editing by Jeffrey Benkoe)

US mortgage rates decline to lowest on record-Freddie