Mortgage Rates Continue In Free Fall
WASHINGTON – Mortgage rates fell for the 11th week in a row, to 40-year lows, according to Freddie Mac.
The average for the 30-year loan dipped again this week to 4.32%, from 4.34% last week; while the average for the 15-year mortgage slipped to 3.83%, from 3.86%.
ARM rates also inched lower, with the average for the five-year ARM moving to 3.54%, from 3.56%, and the average for the one-year ARM slipping to 3.50%, from 3.52% last week.
“Fed Chair Ben Bernanke [last week noted] that with inflation expectations reasonably stable and the economy growing, inflation should remain near current readings for some time before rising slowly. As a result, mortgage rates eased further this week to new historic lows,” said Frank Nothaft, chief economist for Freddie Mac.
"Low rates are helping to heal many battered local housing markets by increasing home-purchase activity," said Nothaft.