30-Year Rates Fall to Record 4.78%
Rates on 30-year mortgages fell to the lowest level on record for the second consecutive week after the Federal Reserve launched a new effort to assist the U.S. housing market.</br></br>Mortgage finance giant Freddie Mac said Thursday that average rates on 30-year, fixed-rate mortgages dropped to 4.78 percent this week from 4.85 percent last week.</br></br>It was the lowest in the history of Freddie Mac's survey, which dates to 1971. Rates are down by more than a full percentage point from a year ago.</br></br>"Mortgage rates followed other interest rates lower this week amid reports of slower economic growth" Frank E. Nothaft, Freddie Mac vice president and chief economist, said in a prepared statement.</br></br>Low rates have sparked a surge in refinancing activity. The Mortgage Bankers Association said Wednesday that its weekly application index climbed 3 percent for the week ended March 27, on top of a 30 percent increase a week earlier. Nearly 80 percent of applications came from borrowers seeking to refinance.