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Freddie Mac, Bankrate find mortgage rates falling again

By Palm Beach Business.com

DELRAY BEACH — Mortgage rates fell and fell rather sharply this week as Fed Chairman Ben Bernanke told Congress that the central bank’s bond-buying program will continue.

The 30-year fixed-rate mortgage dropped to an average of 3.51 percent with 0.8 point from last week’s 3.56 percent, according to Freddie Mac’s Primary Mortgage Market Survey.  Bankrate’s national survey found the 30-year dropping to 3.73 percent with 0.33 point from 3.80 percent a week ago.

The average 15-year fixed-rate mortgage dropped to an average of 2.76 percent with 0.8 point from 2.77 percent a week earlier, according to Freddie Mac, and to 2.96 percent with 0.32 point from 3.02 percent a week ago.

Rates had been relatively stable for the previous month.

Bankrate cited Bernanke’s congressional testimony this week as he said the Fed’s bond-buying efforts have worked to stimulate the economy and will continue despite the desire of a minority of Fed governors who believe the program could damage the economy and want to end it early. The Federal Reserve has been buying mortgage-backed securities in an effort to pump money into the economy and keep mortgage rates low.

Freddie Mac also cited the consumer price index report from the Labor Department, which should little movement on the inflation front.