Industry NewsMortgage

Fed moves, economic worries send mortgage rates to new lows

Applications for purchase loans roughly flat despite cheap loans

As interest rates on fixed-rate mortgage loans continue to slide into uncharted territory, demand for refinancings has picked up but applications for purchase loans are still at about the same level as a year ago.Rates on 30-year fixed-rate mortgage loans averaged 4.01 percent with an average 0.7 point for the week ending Sept. 29, a new low in records dating to 1971, Freddie Mac said in releasing the results of its latest Primary Mortgage Market Survey.Rates on 15-year fixed-rate mortgages averaged 3.28 percent this week with an average 0.7 point, down from 3.29 percent last week and 3.75 percent a year ago, Freddie Mac said. That's also a new low in records dating to 1991.Last year at this time, rates on 30-year fixed-rate mortgages averaged 4.32 percent, before rising to a 2011 high of 5.05 percent in February when expectations for an economic recovery were running high.Those expectations have been reined in by the European debt crisis, which has investors seeking safety in Treasury...