U.S. rates on 30-year mortgages drop to new record low

Average rates on 30-year mortgages across the United States dropped this week to the lowest level on record for the second straight week, Freddie Mac reported on Thursday in its nationwide weekly survey.
In the week ending April 2, rates on 30-year, fixed-rate mortgages averaged 4.78 percent, down from 4.85 percent last week, according to the mortgage giant. The 4.85-percent rate had been the lowest in the history of Freddie Mac's survey, which dates back to 1971. The rates now are down by more than a full percentage point from a year ago.
Mortgage rates in the country fell dramatically over the winter and have fallen further after the Federal Reserve launched a new effort to assist the staggering housing market.
The Federal Reserve announced last month that it would buy 1.2 trillion dollars in mortgage-backed securities and 300 billion dollars in long-term government debt, which traditionally influences rates on 30-year home loans.
Other types of mortgage rates also declined this week.
The average rate on 15-year fixed-rate mortgages, a popular choice for refinancing, dropped to 4.52 percent this week from 4.58 percent last week.
Rates on five-year adjustable rate mortgages (ARMs) fell to 4.92 percent from 4.96 percent. One-year ARMs, meanwhile, were down from 4.85 percent to 4.75 percent.
Low mortgage rates have sparked a surge in refinancing activity, according to the Mortgage Bankers Association on Wednesday. (Xinhua)