Derek Kravitz, AP Real Estate Writer, On Thursday September 22, 2011, 10:43 am
WASHINGTON (AP) — Fixed mortgage rates hovered at record lows for a third straight week. They are likely to fall even further now that the Federal Reserve said it would shuffle its holdings to drive down long-term interest rates. .
The average rate on the 30-year fixed mortgage was unchanged at 4.09 percent this week, Freddie Mac said Thursday. That’s the lowest rate seen since 1951.
The average rate on the 15-year mortgage ticked down to 3.29 percent. Economists say that’s the lowest rate ever for the loan.
Mortgage rates tend to typically track the yield on the 10-year Treasury note. One day after the Fed’s announcement, the yield on the 10-year note touched 1.74 percent Thursday. That’s the lowest level since Federal Reserve Bank of St. Louis started keeping daily records in 1962.