Long-term mortgage rates at record lows

WASHINGTON, Oct. 7 (UPI) -- Average interest rates for long-term mortgages hit historic lows in the week ending Oct. 7, the U.S. Federal Home Loan Mortgage Corp. said Thursday.

Average interest rates for fixed-rate 30-year contracts fell to a record 4.27 percent with 0.8 points, while rates on 15-year fixed-rate contracts hit a reached a new low at 3.72 percent with 0.7 points, Freddie Mac said.

A year ago, average 15-year rates for fixed-rate mortgages averaged 4.33 percent. Thirty-year contracts a year ago averaged 4.87 percent.

Freddie Mac Vice President and Chief Economist Frank Nothaft said, "The 12-month growth rate in the core price index for personal consumption, which the Federal Reserve closely tracks, has been drifting lower over the past six months ... and suggests inflation is tepid at best."

"This allowed mortgage rates to ease to new or near record lows this week," he said.