Long-term mortgage rates hit record again

WASHINGTON, Sept. 15 (UPI) -- Long-term mortgage rates dropped to record lows for the second consecutive week, the U.S. Federal Home Loan Mortgage Corp. reported.

Freddie Mac said the average interest rates for 15-year loans fell from 3.33 percent to 3.3 percent while interest rates on 30-year fixed-rate loans dropped from 4.12 percent to 4.09 percent.

Rates for 15-year fixed-rate mortgages a year ago stood at 3.82 percent. Rates for 30-year mortgages a year ago averaged 4.37 percent.

Frank Nothaft, Freddie Mac's vice president and chief economist, said concerns over Europe's debt markets "kept U.S. Treasury bond yields low and allowed mortgage rates to ease once more."

"Apart from just fixed-rate mortgages, various other interest rates are at or near all-time historic lows as well," Nothaft said, pointing out 10-year constant-maturing Treasury bond and AAA-rated seasoned corporate bond yields also reached 50-year lows in the week.