30-year fixed-rate mortgage drops to new low

The 30-year fixed-rate mortgage average fell to an all-time low of 4.19 percent for the week ending Oct. 14, down from 4.27 percent last week, Freddie Mac said today, marking the 23rd week in a row that the rate has been under five percent. The last time 30-year FRM rates were this low was April 1951. “September’s employment report held no big surprises to financial markets, allowing long-term bond yields and fix mortgage rates to continue to ease,” said Frank Nothaft, vice president and chief economist at Freddie Mac. “As a result, both the 30-year and 15-year fixed mortgage rates hit all-time record lows for the third consecutive week.” Historically low rates have spurred yet another refinancing wave, Nothaft added. According to the Mortgage Bankers Association, conventional mortgage applications for refinance jumped 24 percent over the week of Oct. 8 to the strongest pace since mid-April 2009. TRD