Rate on 30-year mortgage falls to record 3.66 pct

The average U.S. rate on a 30-year fixed mortgage fell this week to a record low for the seventh time in eight weeks. Cheap mortgages have helped drive a modest recovery in the weak housing market this year. Mortgage buyer Freddie Mac said Thursday that the average on the 30-year loan dropped to 3.66 percent. That's down from 3.71 percent last week and the lowest since long-term mortgages began in the 1950s. The average rate on the 15-year mortgage, a popular refinancing option, declined to 2.95 percent. That's down from 2.98 percent last week and just above the record 2.94 percent reached two weeks ago. The rate on the 30-year loan has been below 4 percent since December. Low rates could provide some help to the economy if more people refinance. When people refinance at lower rates, they pay less interest on their loans and have more money to spend. Still, the pace of home sales remains well below healthy levels. Sales of previously occupied homes dipped in May to a seasonally adjusted annual rate of 4.55 million, although they are up from the same month last year.

Click here to view this article from its source.