Mortgage rates plummet

Long-term interest rates on home loans since Friday have hit their lowest point since last summer.

Rates on a 30-year fixed-rate mortgage fell as much as a quarter of a percent following a decrease in the 10-year Treasury bond Monday afternoon, according to mortgage broker reports.

The 30-year fixed-rate average sank to 5.13 percent, and the 15-year fixed-rate slid to 4.42 percent. The 1-year adjustable plunged to 2.98 percent.

Since December, rates have fallen from a high of 5.5 percent on a 30-year fixed-rate mortgage.

The 10-year Treasury bond has fallen 25 basis points or a quarter of 1 percent since Friday. That decrease has driven down long-term interest rates on home loans.

The 10-year Treasury sank to 3.77 percent Monday afternoon, while the 30-year Treasury dropped to 4.71 percent.

Mortgage refinance is on the rebound since long-term interest rates have been declining. Refi activity eased up in the fourth quarter of 2003 after mortgage rates steadily increased from July's low point of 4.9 percent on a 30-year fixed-rate mortgage.

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