Mortgage interest rates hit new lows - KWWL - Eastern Iowa Breaking News, Weather, Closings

Mortgage interest rates hit new lows

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NEW YORK (AP) -- Rates on fixed mortgages dropped to their lowest levels in decades this week after the Federal Reserve unveiled a massive bond-buying program to help spur economic growth.

Mortgage buyer Freddie Mac says the average rate for 30-year fixed loans fell to 4.17 percent from 4.24 percent last week.  That's the lowest on records dating back to 1971.  The average rate on 15-year fixed loans fell to 3.57 percent from 3.63 percent.  That's the lowest since the survey began in 1991.

The Fed detailed plans last week to buy $600 billion in Treasury bonds. The extra demand means Treasury's will produce lower yields for investors.  Mortgage rates tend to track those yields.

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