McLEAN, Va. – Rates on 30-year mortgages plunged this week to the lowest level since January, and are poised to fall even further after the Federal Reserve launched a new effort to prop up the flailing housing market.
Rates on the 30-year fixed-rate mortgage averaged 4.98%, this week, down from 5.03% last week; while rates on 15-year, fixed-rate loans dipped to 4.61%, from 4.64%, according to Freddie Mac.
"Long-term mortgages followed bond yields lower for the second week as reports of slower industrial production suggested that business spending might ease this year," said Frank Nothaft, chief economist for Freddie Mac.
Short-term rates were mixed, with the average for the five-year ARM inching down to 4.98%, from 4.99% last week; and the average for the one-year ARM rising to 4.91%, from 4.80%.
