U.S. Mortgage Rates for 30-Year Loans Fall to Record Low of 3.4%
U.S. mortgage rates declined to record lows as the Federal Reserve pushed down borrowing costs by resuming purchases of mortgage-backed securities.
The average rate for a 30-year fixed loan fell to 3.4% in the week ended today from 3.49%, McLean, Virginia-based Freddie Mac said in a statement. It was the lowest in data going back to 1971. The average 15-year rate dropped to 2.73%, also a record, from 2.77%.
The housing market has been showing signs of recovering as low borrowing costs draw in buyers who are competing for a limited supply of homes. Mortgage rates declined after the Fed's Sept. 13 announcement that it would buy $40 billion of securities per month.
"We've already seen low mortgage rates even before the Fed action," said Anika Khan, a senior economist with Wells Fargo & Co. in Charlotte, North Carolina. "We'll continue to see mortgage rates come down. That means affordability will continue to be high."
http://www.latimes.com/business/la-fiw-mortage-rates-20120928,0,6880149.story
