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. Last Updated: 07/27/2016

U.S. Mortgage Rates Set Record Lows

WASHINGTON -- Averages on U.S. 30- and 15-year fixed-rate mortgages set new record lows in the week ending Oct. 11, Freddie Mac said Thursday.

Thirty-year mortgage rates stood at an average 5.98 percent in the latest week -- the lowest on Freddie Mac's records going back to 1971 -- compared with 6.01 percent last week. The 30-year rate's previous record low was 5.99 percent set in the Sept. 27 week.

Fifteen-year mortgages dipped to an average 5.34 percent -- a new record low on Freddie Mac's records dating back to 1991 -- from its previous record of 5.40 percent last week.

One-year adjustable rate mortgages also fell in the week to an average 4.23 percent from 4.29 percent.

A year ago, 30-year mortgages averaged 6.58 percent, 15-year mortgages 6.06 percent and the ARM 5.26 percent.

"Although the economy in the final quarter of 2002 looks to be weaker than the third quarter, the housing sector still radiates vitality and vigor," said Frank Nothaft, Freddie Mac chief economist.

"We continue to see new records being set, both in the low cost of mortgages and in the volume of business carried out this year. And even though housing may have moderated somewhat in the last few months, current record-breaking low mortgage rates will stimulate demand for homes well into 2003," he said.

Freddie Mac is a corporation chartered by the U.S. Congress that buys mortgages from lenders and packages them into securities for investors or holds them in its own portfolio.