Mortgage rates lowest since 1950s

Moving into a new home has rarely ever been as affordable as it is now, considering another drop in average mortgage rates.

The average interest rate on a 30-year fixed-rate mortgage dropped for the week ending October 14, finishing at 4.19 percent, down from 4.27 percent the previous week, reported Freddie Mac. A year ago at this time, the average rate on a 30-year FRM was 4.92 percent. Freddie Mac data only goes as far back as 1970, so the company consulted data from the Federal Housing Administration, which found that 30-year mortgage rates have not been this low since 1951.

Pointing to an unremarkable September jobs report, which showed little change in the country's unemployment situation, Freddie Mac chief economist Frank Nothaft said that low rates were brought on by easing long-term bond yields. "As a result, both the 30-year and 15-year fixed mortgage rates hit all-time record lows for the third consecutive week," he said.

It would appear that relocating families will continue to benefit from record-low mortgage rates into the near future. At an economic conference at the Federal Reserve Bank of Boston, chairman Ben Bernanke said his agency would consider lowering mortgage rates even further in an effort to stimulate the economy.
 

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