Mortgage rates at or near record lows

WASHINGTON, Oct. 8 (UPI) -- Interest rates for 30-year, fixed-rate U.S. mortgages fell in the week, remaining below 5 percent, the Federal Home Loan Mortgage Corp. said Thursday.

The 30-year, fixed-rate mortgage averaged 4.87 percent with an average 0.7 points during the week ending Oct. 8, Freddie Mac said.

A week ago, 30-year, fixed-rate mortgages averaged 4.94 percent. A year ago, rates averaged 5.94 percent.

At 4.33 percent with an average 0.7 points, the 15-year, fixed-rate average also declined, dropping from the previous week's average of 4.36 percent. The new average is the lowest since 1991, when Freddie Mac first began monitoring interest rates.

"Such low rates are spurring mortgage demand. Mortgage applications surged to a 19-week high over the week ending on October 2nd, according to the Mortgage Bankers Association. Moreover, applications for home purchases were at the strongest pace since the beginning of this year," said Frank Nothaft, Freddie Mac vice president and chief economist.

"Compared to a year ago, consumers could shave almost $134 off their monthly mortgage payments on a 30-year fixed-rate loan for $200,000 by refinancing," he said.