Thirty-year mortgage rate falls to record 3.78%

The average U.S. rate for the 30-year fixed mortgage fell to a record low for a fourth straight week. Cheap mortgages have helped boost home sales modestly this year. Mortgage buyer Freddie Mac said Thursday that the rate on the 30-year loan dipped to 3.78%. That's down from 3.79% last week and the lowest since long-term mortgages began in the 1950s. The average rate on 15-year fixed mortgage, a popular option for refinancing, held steady at 3.04, matching the record low hit last week. < SCRIPT language='JavaScript1.1' SRC="http://ad.doubleclick.net/adj/N6515.2664.AZCENTRAL.COM1/B6492291.2;abr=!ie;sz=160x600;click=http%3A//gannett.gcion.com/adlink%2F5111%2F334834%2F0%2F154%2FAdId%3D2712204%3BBnId%3D1%3Bitime%3D901533913%3Blink%3D;ord=901533913?"> < /SCRIPT>< NOSCRIPT>< A HREF="http://gannett.gcion.com/adlink/5111/334834/0/154/AdId=2712204;BnId=1;itime=901533913;nodecode=yes;link=http://ad.doubleclick.net/jump/N6515.2664.AZCENTRAL.COM1/B6492291.2;abr=!ie4;abr=!ie5;sz=160x600;ord=901533913?"> < IMG SRC="http://ad.doubleclick.net/ad/N6515.2664.AZCENTRAL.COM1/B6492291.2;abr=!ie4;abr=!ie5;sz=160x600;ord=901533913?" BORDER=0 WIDTH=160 HEIGHT=600 ALT="Advertisement"> < /NOSCRIPT> The average rate on the 30-year loan has been below 4% since early December. Lower rates are a key reason the housing industry is flashing signs of a recovery five years after the bubble burst. In April, sales of both previously occupied homes and new homes rose near two-year highs. Builders are gaining more confidence in the market, breaking ground on more homes and requesting more permits to build single-family homes later this year.

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