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Mortgages hit new lows
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September 24, 1998: 2:16 p.m. ET
The 30-year mortgage rate hits its lowest point since 1967
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NEW YORK (CNNfn) - Mortgage interest rates gave even more incentive for people to buy or refinance their homes this week, as they fell even further past last week's low levels, mortgage firm Freddie Mac said Thursday.
For the week ending Sept. 25, the rate on U.S. 30-year fixed mortgages dipped to an average 6.64 percent from last week's 6.66 percent. Fifteen-year loans also were down at an average 6.32 percent from 6.35 percent the week before.
One-year adjustable rate mortgages, too, came in lower at an average 5.42 percent from last week's 5.43 percent.
In the 27-year history of the Primary Mortgage Market Survey, the 30-year rate has not been this low. And the 15-year mortgage rate has not been this low since the week ending Oct. 22, 1993, when the average was 6.31 percent.
A year ago, the 30-year rate averaged 7.28 percent, the 15-year 6.86 percent and the one-year adjustable 5.51 percent.
"Mortgage rates continued to set records," said Freddie Mac economist Frank Nothaft. "Interest rates remain the lowest in Freddie Mac history; indeed, they are the lowest we have seen since 1967."
Nothaft added, "Because of the current low interest rate environment, Freddie Mac economists expect that existing home sales figures will continue at a brisk pace of 4.8 to 4.9 million units in August and September."
Freddie Mac said lenders charged an average 1.0 in fees and points on 30-year mortgages, 0.9 on 15-year mortgages, and 1.1 on the one-year-adjustable rate.
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