Fixed mortgage rate falls to 4.78 percent

Fixed 30-year mortgage rates fell to a record low for the second consecutive week, hitting 4.78 percent this week, according to a statement from Freddie Mac. The rates are the lowest in records dating to 1971, and the low rates come after U.S. Federal Reserve Chairman Ben Bernanke told Congress that helping the most creditworthy borrowers is essential to reviving the economy. The Fed’s effort to bring down fixed rates may give consumers as much as $25 billion, Mark Zandi, chief economist of Moody’s Economy.com, said. Nicolas Retsinas, director of Harvard University’s Joint
Center for Housing Studies, said the low rates will help put more money into circulation and could help fuel consumer spending.