News Summary: Rates on US mortgages at record lows

AP News
Posted: Sep 27, 2012 3:46 PM

RATES AT RECORD LOWS: Average U.S. rates on fixed mortgages fell again to record lows this week. The decline suggests the Federal Reserve's stimulus efforts may be having an impact on mortgage rates.

THE NUMBERS: The average rate on the 30-year mortgage dropped to 3.40 percent. That's down from last week's 3.49 percent, the lowest since long-term mortgages began in the 1950s. The rate on the 15-year mortgage fell to 2.73 percent, down from last week's record low 2.77 percent.

FED ACTION: The Fed is spending $40 billion a month to buy mortgage-backed securities. The goal is to lower mortgage rates and help the housing recovery.