The average rate on a 30-year fixed mortgage fell last week to the lowest level in almost four decades, according to Freddie Mac, the No. 2 buyer of U.S. mortgages.
The 30-year rate declined to 5.85 percent in the week that ended Friday, the lowest since the early 1960s, from 5.93 percent. The average rate on one-year adjustable mortgages rose to 4.06 percent, up from a rate of 4.01 percent that was the lowest in almost two decades of recordkeeping.
"Just when we were sure mortgage rates couldn't possibly drop any lower, we were surprised yet again," said Frank Nothaft, chief economist at Freddie Mac. "We continue to expect, however, that rates will hover around 6 percent for at least another few months."
