Economic worries push mortgage rates to new lows

Debate over QE3 intensifies as Fed meeting looms

Mortgage rates probed new lows this week as growing worries about the strength of the economic recovery raises the prospects that the Federal Reserve will approve another round of quantitative easing.

Rates on 30-year fixed-rate mortgages averaged 3.49 percent with an average 0.7 point for the week ending July 26, down from 3.53 percent last week and 4.55 percent a year ago, Freddie Mac said in releasing the results of its weekly Primary Mortgage Market Survey. That’s a new low in Freddie Mac records dating to 1971.