McLEAN, Va. – Home loan rates fell again this week as the Fed announced plans to buy up distressed mortgage securities, with the benchmark 30-year mortgage dipping to 4.85%, according to Freddie Mac.
The rate, down from 4.98% last week, is the lowest since Freddie Mac began tracking national averages in 1971, and near the post-World War Two lows.
"The Federal Reserve's announcement that it intends to purchase Treasury securities over the next six months caused bond yields to drop and mortgage rates followed," said Frank Nothaft, chief economist for Freddie Mac.
The average for the 15-year, fixed-rate loan also declined, to 4.58%, from 4.61% last week.
Short-term rates also moved downwards, with the average for the five-year ARM inching down to 4.96%, from 4.98%; and the average for the one-year ARM slipping to 4.85%, from 4.91% last week.
