Freddie Mac: Mortgage Rates drop below 5 percent

2009 November 5

U.S. mortgage rates fell below 5 percent for the first time in three weeks, a key level that may boost home loan demand and help the hard-hit housing market recover, a closely watched mortgage survey showed Thursday.

Interest rates on U.S. 30-year fixed-rate mortgages averaged 4.98 percent for the week ending November 5, down from the previous week’s 5.03 percent, according to a survey released on Thursday by home funding company Freddie Mac.

Many industry experts view 5 percent as a key psychological level. When rates drop below this threshold, home loan demand tends to rise, while the opposite holds true when rates rise. A year ago, 30-year mortgage rates averaged 6.20 percent.

Mortgage rates drop below 5 percent: Freddie Mac

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