Industry NewsMortgage

Mortgage rates at record lows

Rate rebound expected next year

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Mortgage rates eased for the fourth consecutive week, hitting historic lows well below 5 percent this week, Freddie Mac said in releasing the results of its latest Primary Mortgage Market Survey.Rates on 30-year fixed-rate mortgages averaged 4.78 percent with an average 0.7 point for the week ending Nov. 25, down from 4.83 percent last week and 5.97 percent a year ago.The 30-year fixed-rate tied a record low in records dating back to 1971 of 4.78 percent last seen in April as a Federal Reserve program to purchase up to $1.25 trillion in mortgage-backed securities issued by Fannie Mae, Freddie Mac and Ginnie Mae hit full stride.The Fed had originally planned to wind up those purchases by the end of this year, but has elected to stretch the program out through March 2010 because it had unused capacity. The Mortgage Bankers Association last month projected that 30-year fixed-rate mortgages will hit 5.4 percent next year, 6 percent in 2011, and 6.3 percent in 2012 (see story).Freddie Mac s...