McLEAN, Va. – Long-term mortgage rates dropped again this week, with the 30-year fixed-rate mortgage hitting a fourth consecutive record low in the history of Freddie Mac's weekly survey.
The average for the 30-year, fixed-rate mortgage fell to 5.01% this week, from last week's 5.10%. The rate hasn't been lower since Freddie Mac's Primary Mortgage Market Survey began in 1971.
Rates on 15-year fixed-rate mortgages also dropped, to 4.62%, from 4.83% last week. That rate hasn't been lower since June 13, 2003, when it averaged 4.60%.
ARM rates were mixed, with the average for the five-year ARM declining to 5.49%, form 5.57% last week; and the average for the one-year ARM inching up to 4.95%, from 4.85%.
Frank Nothaft, chief economist for Freddie Mac, attributed the falling rates to the Federal Reserve’s purchases of government-issued mortgage backed securities. "Interest rates for 30-year fixed-rate mortgages fell for the tenth week to a fourth consecutive record low due in part to the Federal Reserve's recent purchases of mortgage-backed securities issued by Freddie Mac, Fannie Mae and Ginnie Mae," said Nothaft
