Rates in the News, According to Freddie Mac

Mortgage Rates Fall to Fresh Lows, Freddie Mac Says*

Mortgage rates have set record lows for the eighth time in nine weeks, and the bargain-basement rates are prompting homeowners to file the most home-refinancing applications in 15 months.

The average rate offered on a 30-year fixed home loan fell this week to 4.42%, down from 4.44% last week, Freddie Mac reported Thursday. The latest figure is the lowest since the giant mortgage buyer began its rate survey in 1971.

Savvy borrowers with strong credit and down payments often can get slightly better deals if they shop around. The rock-bottom interest costs boosted refinance activity last week to its highest level since May 2009, according to a weekly report on loan applications from the Mortgage Bankers Assn.

But demand for loans to purchase homes remained sluggish, as it has been since federal home-purchase tax credits expired in the spring. Just 18.6% of last week's mortgage applications were filed to buy homes, the trade group said.



*courtesy of Landover Mortgage