30-Year Fixed-Rate Mortgage at Record Low

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Freddie Mac stated the 30-year fixed-rate mortgage average decreased to an all-time low of 4.19% with an average 0.8 point for the week ending Thursday, October 14. The average was 4.27% in the previous period, and the year-ago average was 4.92%. The 30-year rate has been under 5% for 23 weeks in a row, as of this week. Frank Nothaft, Freddie Mac chief economist, stated “September’s employment report held no big surprises to financial markets, allowing long-term bond yields and fix mortgage rates to continue to ease. As a result, both the 30-year and 15-year fixed mortgage rates hit all-time record lows for the third consecutive week.” He added, “Historically low rates have spurred yet another refinancing wave. Conventional mortgage applications for refinance jumped 24% over the week of Oct. 8 to the strongest pace since mid-April 2009, according to the Mortgage Bankers Association. The Bureau of Economic Analysis estimates that homeowners held an average effective mortgage rate of 6.07% in the second quarter of 2010.”Source: marketwatch.com