Mortgage rates on 30-year loans slid to a record low for the second straight week, lowering borrowing costs for homebuyers as demand slumps.
Rates for 30-year fixed loans dropped to 4.58% in the week that ended Thursday from 4.69% last week, Freddie Mac said in a statement. The average 15-year rate fell to a record 4.04%, the McLean, Va., company said.
Mortgage rates have been declining since May as concern that a European debt crisis may spread pushed investors to the safety of Treasuries and government-supported bonds tied to home loans. Yields on Fannie Mae and Freddie Mac mortgage securities have fallen to the lowest level in more than a year.