McLEAN, Va. – Home mortgage rates continued to fall toward record lows this week, as the government pumps vast new sums into the housing market, according to Freddie Mac.
The average for the 30-year, fixed-rate loan dropped again this week from 4.85% last week, to 4.78% this week, its lowest since Freddie began its national rate survey in 1971, and the lowest since the post-World War two years.
The average for the 15-year, fixed-rate mortgage also fell again, from4.58% last week, to 4.52%.
Short-term rates also moved lower, with the average for the five-year ARM dipping from 4.96%, to 4.92%; and the average for the one-year ARM declining all the way from 4.85% to 4.75%.
"Mortgage rates followed other interest rates lower this week amid reports of slower economic growth" said Frank Nothaft, chief economist for Freddie Mac.
"Serving as a spur to sales, housing affordability reached an all-time high in February 2009," based on a National Association of Realtors survey also dating from 1971, said the Freddie Mac economist.
The record-low rates come as the Treasury is preparing to buy up to $1.45 trillion of mortgage-related assets to help press and keep mortgage rates down.
