McLEAN, Va. – Rates on 30-year mortgages set a record for a fifth straight week by dropping to below 5%, the lowest mark since Freddie Mac started tracking the data in 1971.
The average for the 30-year, fixed-rate loan declined this week to 4.96%, from 5.01% last week; though the average for the 15-year, fixed-rate mortgage inched up to 4.65%, from 4.62%.
ARM rates also fell, with the average for the five-year ARM slipping to 5.25% this week, from 5.49% last week; while the average for the one-year ARM dipped to 4.89%, from 4.95%.
Frank Nothaft, Freddie Mac's chief economist, said mortgage rates have fallen as the Treasury Department and the Fed added more than $100 billion in liquidity to the mortgage market since September. "Interest rates for 30-year fixed rate mortgages fell for the 11th straight week to another record low, due in part to the slowing economy and government actions," he said
"So far, both the U.S. Treasury Department and the Federal Reserve have added over $100 billion in liquidity to the mortgage market since September 2008, which put downward pressure on interest rates for fixed-rate mortgages. The Federal Reserve may add up to an additional $570 billion more this year, based on its Nov. 25, 2008, announcement, to further shore up mortgage lending and keep rates low," said Nothaft.
