Mortgage Rates Drop Below 4% for First Time

30-year fixed loans hit historic low
By Newser Editors and Wire Services
Posted Oct 6, 2011 11:35 AM CDT
Mortgage Rates Drop Below 4% for First Time
This photo taken Sept. 19 shows a home with a for-sale sign in front, in Newton, Mass.   (Steven Senne)

The average rate on the 30-year fixed mortgage this week fell below 4% for the first time ever, to 3.94%. And mortgage rates could fall even further now that the Federal Reserve plans to reshuffle its portfolio of securities to try and lower long-term rates. Freddie Mac said the average rate on a 30-year fixed mortgage dropped from 4.01% last week, the previous low.

The average rate on a 15-year fixed loan, a popular refinancing option, dipped to 3.26%, also a record. Still, rates have been below 5% for all but two weeks in the past year and have done little to boost home sales. This year is shaping up to be among the worst for sales of previously occupied homes in 14 years. (Read more mortgage rates stories.)

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