CONSUMER ALERT: Mortgage Rates Hit Decades-Low Of 4.19 Percent
WASHINGTON (AP) - Rates on 30-year mortgages fell to 4.19 percent, the lowest level in decades. They were pushed down by lower Treasury bond yields.
Investors are buying up Treasury bonds in anticipation of a move by the Federal Reserve designed to lower mortgage rates and yields on corporate debt.
As a result, the average rate for 30-year fixed loans dropped to the lowest level on records dating back to 1971. It's down from 4.27 percent the previous week.
The average rate on 15-year fixed loans fell to 3.62 percent, the lowest on records dating back to 1991.
Rates have mostly fallen since spring as investors shifted money into the safety of Treasury bonds. That demand lowers their yields, which mortgage rates tend to track.
(Copyright 2010 by The Associated Press. All Rights Reserved.)
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