Industry News

Mortgage rates hit two-year lows

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Freddie Mac is the latest group tracking loan prices to report that rates on 30-year fixed-rate mortgages have fallen below the 6 percent threshold. The McLean, Va.-based mortgage repurchaser's weekly Primary Mortgage Market Survey showed borrowers paying an average of 5.96 percent interest with 0.4 points for a 30-year fixed-rate mortgage during the week ending Dec. 6. That's down from 6.1 percent the previous week, and has not been lower since the last week of September, 2005, when it averaged 5.91 percent. Lower housing prices, personal spending and income are factors pushing mortgage rates down, according to Freddie Mac's chief economist, Frank Nothaft. "With lower consumer spending and personal income gains in October, interest rates on U.S. Treasury securities fell lower this week and mortgage rates followed," Nothaft said in a press release. He said the federal funds futures market has priced in "almost a 100 percent probability" that the Fed will lower rates at its...