Mortgage rates reach new record lows in time for the holidays

Freddie Mac's Primary Mortgage Market Survey found the average fixed mortgage rates are at or near all-time record lows, for the week ending December 22. The survey found the 30-year fixed rate averaged 3.91 percent for the week, a new record low down from 3.94 percent the week prior. The 15-year fixed average matched last week's record low of 3.21 percent.

Chief economist for Freddie Mac, Frank Nothaft said the lower rates are making it easier for buyers to afford a home and pushing up existing home sales for the second straight month in November.

"In addition, new construction of one-family homes also showed a back-to-back monthly gain in November to the largest increase since June," Nothaft said. "Moreover, homebuilder confidence in December rose to its highest reading since May 2010."

Homeowners are working on ways to modify or refinance their home loans to help save money and take advantage of the historically low rates. Fox Business recommends homeowners follow some simple steps in preparation for a loan modification. Homeowners should research different lenders, check their credit scores and try to reduce their debt to improve their chances of a modification before making any decisions.

More News