The 30 Year Fixed Mortgage Rate Drop And Hit New Low Record

Written By: admin on December 31, 2008 No Comment

Wednesday, December 31, 2008, The 30 year fixed mortgage rate dropped again and hit a new low record. Freddie Mac said Wednesday that its benchmark long-term mortgage rate average fell for the ninth consecutive week and to a new low since it started tracking the rate in 1971.

The 30-year fixed-rate mortgage average fell to 5.1% with an average 0.7 point for the week ending Dec. 31, down from last week when it averaged 5.14%. Last year, the average was 6.07%.

“Since the end of October of this year, these rates have declined by about 1-1/3 percentage points, or payment savings of approximately $173 a month for a $200,000 loan,” said Frank Nothaft, Freddie Mac chief economist, in a statement. “As a result, the number of refinance applications for conventional mortgages jumped over 500% between the weeks ending on Oct. 31st and Dec. 26th.”