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3.40: Mortgage Rates Drop Significantly, Set New Record

by Shilpi Paul

3.40: Mortgage Rates Drop Significantly, Set New Record: Figure 1

Mortgage rates dropped significantly this week and hit a new record low.

This morning, Freddie Mac reported 3.40 percent with an average 0.6 point as the average on a 30-year fixed-rate mortgage.

From Freddie Mac vice president and chief economist Frank Nothaft:

Fixed mortgage rates continued to decline this week, largely due to the Federal Reserve’s purchases of mortgage securities, and should support an already improving housing market. For instance, the S&P/Case-Shiller® 20-city home price index rose 1.2 percent over the 12 months ending in July, reflecting the largest annual increase since August 2010.

The UrbanTurf Mortgage Rate Disclaimer: The rates reported by Freddie Mac for 30-year mortgages are usually the best rates that the most qualified borrowers can get, so borrowers or those considering refinancing should not necessarily read this news and think that they can go out and get a loan with the quoted interest rate.

Here’s a look at the path of rates since January 2010:

3.40: Mortgage Rates Drop Significantly, Set New Record: Figure 2

See other articles related to: mortgage rates, interest rates, freddie mac

This article originally published at http://dc.urbanturf.com/articles/blog/3.40_rates_drop_significantly_set_new_low/6083

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