Industry NewsMortgage

30-year fixed rate below 5% again

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Rates on 30-year fixed-rate mortgages for borrowers with good credit fell below 5 percent this week for the first time since May, Freddie Mac said in releasing the results of its Primary Mortgage Market Survey. But demand for mortgages was down slightly last week, the Mortgage Bankers Association said in another survey. The 30-year fixed-rate mortgage averaged 4.94 percent with an average 0.7 point, down from 5.04 percent last week and 6.1 percent a year ago, Freddie Mac said. The 30-year fixed-rate last dipped below 5 percent during the week ending May 28, when it averaged 4.91 percent.The 30-year fixed-rate hit a record low in records dating back to 1971 of 4.78 percent in April, largely because of a Federal Reserve program to purchase up to $1.25 trillion in mortgage-backed securities issued by Fannie Mae, Freddie Mac and Ginnie Mae.The Fed has announced it will stretch those purchases out through the end of March rather than discontinuing the program at the end of the year as orig...