Mortgage Rates Hit Two-Year Low

Washington, DC, January 10, 2008—Interest rates on 30-year fixed rate mortgages fell to their lowest level since September 2005, according to Freddie Mac.

The interest rate on a 30-year mortgage averaged 5.87 percent, down from 6.07 percent, the weekly Freddie Mac’s survey indicated. A year ago, the 30-year average rate was 6.21 percent.

The average rate for a 15-year fixed-rate mortgage was 5.43 percent, down from 5.68 percent last week.

Five-year adjustable-rate mortgages averaged 5.63 percent, down from 5.78 percent.

“The National Association of Realtors also indicated a drop in its pending-home sales index for November, signaling a possible slowdown in December sales,” said Frank Nothaft of Freddie Mac in a news release.

“These weak economic reports renewed concerns about economic conditions in the near future.”

He noted, however, that lower rates are spurring refinancing.