McLEAN, Va. – Long-term mortgage rates sunk again this week to their lowest in 37 years, amid continuing efforts by the Federal Reserve to prop up the market, according to Freddie Mac.
The average for the 30-year, fixed-rate loan dropped from 5.47% last week, to 5.19% this week, the lowest since Freddie Mac began its weekly rate survey in 1971. The average for the 15-year, fixed-rate mortgage dipped from 5.20% to 4.92%.
ARM rates also moved lower, with the average for the five-year ARM falling from 5.82% last week, to 5.6% this week; and the average for the one-year ARM declining from 5.09% to 4.94%.
The falling rates come as the government continues its efforts to spur homebuying. Last week and this week the Treasury bought billions of dollars of mortgage backed securities, part of a plan to buy as much as $600 billion in MBS. And Earlier this week, the Fed cut the benchmark rate for overnight Fed Funds to between 0% and 0.25%, the lowest on record.
"Interest rates for 30-year fixed-rate mortgage rates fell for the seventh consecutive week, moving these rates to the lowest since the survey began in April 1971," said Frank Nothaft, chief economist for Freddie Mac.
"The decline was supported by the Federal Reserve announcement on December 16th, when it
