30-Year Mortgages Dive To 5.01 Percent, Refinancers Rejoice

Mortgage interest rates have hit yet another record low, The Post's Dina ElBoghdady reports.

This week, rates on a 30-year fixed rate mortgage averaged 5.01 percent, down from 5.10 percent the previous week and 5.87 percent at the same time last year, according to a closely watched survey released this morning by mortgage financier Freddie Mac.

That’s the lowest level since the company started the survey in 1971.

Rates have been plummeting since Nov. 25, when the Federal Reserve announced plans to purchase $500 billion of mortgage backed securities by the end of June in its push to loosen up consumer lending.

Earlier this week, the Federal Reserve Bank of New York started buying fixed rate mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae. The bank will begin detailing these operations on its Website every Thursday, starting today.

Frank Nothaft, Freddie Mac’s chief economist, today cited the Fed’s recent purchases as part of the reason rates dipped lower this week.

-- Frank Ahrens
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