Mortgage rates continued to inch downward into new record territory this week as worries about the European debt crisis continued to make Treasuries and mortgage-backed securities that fund most home loans look like safe bets to investors.
Borrowers finally seem to be responding to lower rates, with demand for purchase mortgages and refinancing picking up last week.
Rates on 30-year fixed-rate mortgages averaged 4.09 percent with an average 0.7 point for the week ending Sept. 15, a new low in records dating to 1971, Freddie Mac said in releasing the results of its latest Primary Mortgage Market Survey. That’s down from last week’s record low of 4.12 percent, and a 2011 high of 5.05 percent seen in February.
Rates on 15-year fixed-rate mortgages averaged 3.3 percent with an average 0.6 point, down from 3.33 percent last week and a 2011 high of 4.29 percent in February. That’s a new low in records dating to 1991.