30-year mortgage rate falls

The rate on 30-year mortgage hits record 3.85 percent.
Published: May 4, 2012

In brief

Mortgage rates fall

Average U.S. rates for 30-year and 15-year fixed mortgages fell to fresh record lows this week, offering more incentive for Americans to buy or refinance homes.

Mortgage buyer Freddie Mac said Thursday that the rate on the 30-year loan fell to 3.84 percent, the lowest since long-term mortgages began in the 1950s. That's below the previous record rate of 3.87 percent reached in February.

The 15-year mortgage dropped to 3.07 percent, also a record. The previous record of 3.11 percent was hit three weeks ago.

Many potential buyers still can't qualify for loans or afford higher down payments required by banks. Home prices in many cities continue to fall, making those that can afford to buy uneasy about entering the market.

Associated Press