Average Mortgage Rates Hit 4.42%, Lowest in Decades

Mortgage rates fell to the lowest level in decades for the 8th time in 9 weeks. According to Freddie Mac, the average rate for 30-year fixed loans this week was 4.42%, which is down from 4.44% last week.That's the lowest since Freddie Mac began tracking rates in 1971.


The average rate on 15-year fixed loans dropped to 3.9%, down from 3.92% last week and the lowest on records dating back to 1991. Rates have fallen since spring as investors sought the safety of Treasury bonds, lowering their yield. Mortgage rates tend to track those yields.
Falling rates have pushed refinancing of home loans to the highest level since May 2009. But it's still lower than during the first three months of that year, when rates first fell to around 5%.


Despite these extremely low mortgage rates, home sales are still down. They remain hobbled by the weak economy and tight credit standards. Rates have fallen since spring as investors sought the safety of Treasury bonds, lowering their yield. Mortgage rates tend to track those yields.


To calculate the national average, Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day.


Average rates on five-year adjustable-rate mortgages were unchanged at 3.56%. 
Rates on one-year adjustable-rate mortgages also were unchanged at an average of 3.53%.