Freddie Mac: 30-Year Mortgage Rate At 38-Year Low (4.71%)

Freddie Mac (NYSE:FRE) has some great news to report, 30-year fixed-rate mortgage rates are now at  4.71% on average for the week ended Thursday, down from last week's 4.78% average and 5.53% a year ago.

(WSJ.com) Mortgage rates generally fell again this week, with the average rate on 30-year fixed-rate mortgages reaching the lowest level in at least 38 years, according to Freddie Mac's weekly survey.

"Interest rates for 30-year and 15-year fixed-rate mortgages fell for the fifth consecutive week to an all-time low while the average rate on five-year (adjustable-rate mortgages) hovered near its record set in the previous week," Frank Nothaft, Freddie's chief economist, said Thursday.

Mortgage rates have been pushed lower by weak housing demand and rising foreclosures. In addition, Treasury prices have risen, indicating that investors and financial institutions are retreating from riskier bets, and sending yields lower. Mortgage rates tend to follow the yields.

Earlier this week, the National Association of Realtors said its forecasting gauge of housing-market activity climbed to its highest level in more than three years in October. Last week, the association said October sales of existing homes jumped 10% as buyers continued to take advantage of a first-time-home-buyer tax credit, low prices and low mortgage rates.

SOURCE: http://online.wsj.com/article/SB1000142405274870400780457457379429274098...