Home loan rates fall in mid-November, reach new lows

Recent mortgage records showed the home loan rates dropped to their lowest levels on record, according to a report from Freddie Mac.

Recent mortgage records showed the home loan rates dropped to their lowest levels on record, according to a report from Freddie Mac.

The 15-year fixed-rate mortgage fell to 2.63 percent during the week ending November 21, which was slightly lower than the previous week's level of 2.65 percent. The 30-year fixed-rate mortgage average was 3.31 percent, a drop from the previous figure of 3.34 percent, the government-sponsored enterprise's Primary Mortgage Market Survey revealed. The five-year Treasury-indexed hybrid adjustable-rate mortgage remained unchanged from the previous week, as its average was 2.74 percent.

"Fixed mortgage rates continued to ease somewhat this week to record lows and should help the ongoing housing recovery," said Frank Nothaft, vice president and chief economist for Freddie Mac. "Already, new construction on homes was up 3.6 percent in October to the strongest pace since July 2008."

Despite the still-low mortgage rates from the aforementioned report, the Mortgage Bankers Association showed a drop in home loan applications. The level of applications fell 2.2 percent from the previous week, as the impending fiscal cliff threatens the financial safety and soundness of borrowers, according to the association's Weekly Mortgage Applications Survey.



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