Mortgage Rates Plunge To New Depths

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WASHINGTON – Mortgage rates fell this week for the first time in a month, towards their lowest on record, according to Freddie Mac.

The average for the 30-year, fixed-rate mortgage declined to 4.17% this week, from 4.24% last week; while the average for the 15-year mortgage fell to 3.57%, from 3.63%.

ARM rates also moved lower, with the average for the five-year ARM slipping to 3.23%, from 3.39%; and the average for the one-year ARM holding steady at 3.26%.

"Treasury bond yields initially fell and then gradually rose again" after the Federal Reserve's Nov. 3 announcement that it plans to purchase up to $600 billion in government securities, said Frank Nothaft, chief economist for Freddie Mac. "This allowed mortgage rates to fall to record levels this week."

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