Mortgage rates plummet to 4 year low

Washington Business Journal - by Jeff Clabaugh Staff Reporter
 
Mortgage rates followed other interest rates lower this week, with the average 30 year fixed rate mortgage now at the lowest level in almost four years.

Freddie Mac's weekly report says 30-year fixed rate mortgages averaged 5.48 percent this week, down from 5.69 percent last week. It is the fourth consecutive week mortgage rates have declined.

It is the lowest level for 30-year fixed rate mortgages since March 25, 2004, when the average was 5.40 percent.

"When the Federal Reserve cut the target federal funds rate by three quarters of a percentage point, the action was extraordinary in both the magnitude and the timing of the rate cut: it is the largest cut since October 1984, and also the first time in more than six years that the Fed took such action outside of a scheduled Federal Open Market Committee meeting, said Freddie Mac chief economist Frank Northaft. "As a result, mortgage rates continued trending down for the fourth consecutive week across loan products."

Source: Washington Business Journal. View Article.

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