WASHINGTON (AP) - Rates on 30-year-fixed mortgages dropped this
week to their lowest levels in at least 37 years.
The decline came as the Federal Reserve pledged to pour money
into the mortgage market in an effort to pump life into the U.S.
Freddie Mac says the average rate on 30-year fixed-rate
mortgages dropped to 5.19 percent from 5.47 percent last week. The
rate is the lowest since April 1971.
Rates on 15-year fixed-rate mortgages dropped this week to an
average of 4.92 percent from 5.2 percent last week.
Mortgage rates started falling after the Fed launched a new
effort in late November to aid the housing market by purchasing up
to $600 billion of mortgage-related securities and other debt
issued by Fannie Mae, Freddie Mac and the Federal Home Loan Banks.