Mortgage Rate Drops

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Mortgage rates dropped again this week, with the 15-year fixed-rate loan hitting a record low, according to a report from mortgage financier Freddie Mac.

The 15-year fixed rate fell to 2.56% from 2.61%. A year ago, it stood at 3.07.

The most popular mortgage, the 30-year fixed rate, came in at 3.35%, a drop of 0.05 percentage point and only 0.04 percentage point above its record low set the week of November 21, 2012.

The rates provide a welcome boost to the housing market and to the overall economy, according to Frank Nothaft, Freddie Mac’s chief economist.

“Residential fixed investment added to overall economic growth over the past eight consecutive quarters and contributed more than 0.3 percentage points in growth over the first three months of this year,” he said. “[N]ear record low mortgage rates should further drive the housing market recovery over the near term.”

Source: CNN Money

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