US Mortgage Rates Drop to Record Low of 4.71%

Posted on 03 December 2009

There is a record drop in mortgage rates for fixed 30-year loans, among signs that the housing market has started emerging from the worst slump since the 1930s.

Rates fell to lowest ever recorded 4.71%

The rate has become as low as 4.71% for the week ended today. This has been recorded as the lowest since Freddie Mac began compiling the data in 1971.

current mortgage rates2

Mortgage buyer Freddie Mac of McLean, Virginia,  said today in a statement that the average 15-year rate was 4.27%.

Increase in Mortgage Applications

Low mortgage costs and a tax credit for first-time homebuyers have rendered help to increase the demand for property as in October the number of contracts to buy previously owned homes rose and last week there has been a surge in mortgage applications.

The challenges for the housing industry are jobless rate at a 26-year high and mounting foreclosures.

Rise in Pending Home Sales Index

The National Association of Realtors said on Dec. 1 that, the index of signed purchase agreements, or pending home sales, has shown a rise of 3.7% to 114.1 after rising 6% in September.

Rise in MBA’s Index of applications to purchase home or refinance

In the week ended on Nov. 27 the Mortgage Bankers Association’s index of applications to purchase a home or refinance a mortgage rose 2.1%. A 4.1% rise in purchase index and 1.7% rise in the refinancing has been noted.

Federal Reserve program has helped reducing mortgage rates

This year a Federal Reserve program to buy up to $1.25 trillion in securities backed by home loans has helped to reduce the mortgage rates. The program is scheduled to end in the first quarter of next year.

People who liked this Post also read

  • Rapid fall in 30-Year Fixed Mortgage Rate
    According to Zillow Inc. of Seattle, Wash, the rate for 30-year fixed mortgages has dropped down seven basis points last week to 4.62%, down from 4.69% the last week……
  • Rise in US Mortgage Rates But Still Below 5%
    Yesterday Freddie Mac released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 4.94% with an average 0.7 point for the week ending……
  • Rise in Mortgage rates
    The US weekly average rate for a 30-year fixed mortgage has raised up from 4.62% to 4.67%….
  • Today’s Mortgage Rates
    There has been a slight increase in long term mortgage rates in this week’s Mortgage Applications Survey that has been released this morning by the Mortgage Bankers Association…….
  • An Upturn in Housing Driven by Current Mortgage Rates
    Over the past couple of months the housing data that has been released suggests that a housing recovery is near or it may be said that it is already underway. A “perfect storm” for a housing turn around has been created by the combination of low current m…

This post was written by:

– who has written 326 posts on Loan Mortgage Credit!.

Contact the author

Leave a Reply

Warning: mysql_pconnect() [function.mysql-pconnect]: Host ‘’ is blocked because of many connection errors; unblock with ‘mysqladmin flush-hosts’ in /home/macbethe/public_html/lmc/wp-content/uploads/links_sidebar.php on line 11

Fatal error: in /home/macbethe/public_html/lmc/wp-content/uploads/links_sidebar.php on line 11