Mortgage rates drop again

WASHINGTON, Dec. 4 (UPI) -- Interest rates for 30-year, fixed-rate U.S. mortgages fell dramatically during the week, the Federal Home Loan Mortgage Corp. said Thursday.

"Thirty-year fixed-rate mortgage rates are now almost a full percentage point lower since the last week in October," said Frank Nothaft, Freddie Mac vice president and chief economist.

The 30-year, fixed-rate mortgage dropped from 5.97 percent with an average 0.7 points to 5.53 percent, in the week ending Dec. 3, Freddie Mac said.

Rates for these mortgages haven't been this low since late January, Freddie Mac said.

At 5.33 percent with an average 0.7 points, the 15-year, fixed-rate average also declined, dropping from the previous week's average of 5.65 percent, hitting a low unseen since March, the report said.

"After Federal Reserve actions to increase liquidity in the mortgage market, interest rates for fixed-rate mortgages took a dive," Nothaft said.

"The recent plunge in rates contributed to the nearly 150 percent jump in conventional mortgage applications over the Thanksgiving week, led by almost a 300 percent surge in refinances, according to the Mortgage Bankers Association," he said.