Mortgage Rates Fall to New Low

The cost of borrowing to buy a home is now at its lowest level in almost four decades.

Freddie Mac said the average 30-year fixed-rate mortgage fell from 4.85 percent last week to 4.78 percent this week, a full 1 percent lower than a year ago and the lowest 30 year rate since Freddie Mac started keeping track in 1971.

Long-term adjustable rate mortgages are now on-par with adjustable rate mortgages, with the average one year ARM at 4.75 percent this week.

“Mortgage rates followed other interest rates lower this week amid reports of slower economic growth,” said Freddie Mac chief economist Frank Nothaft. “The final estimate of economic growth in the fourth quarter was revised lower and personal incomes fell 0.2 percent in February, below market consensus.”

Source: Freddie Mac