Mortgage rates hit new low

Charlotte Business Journal by Jeff Clabaugh, Broadcast/Web Reporter

Long-term mortgage rates fell to record lows this week.

A 30-year fixed-rate mortgage averaged 3.94 percent in the week ending Dec. 15, down from 3.99 percent the previous week, according to the weekly rate report by Freddie Ma (OTC BB:FMCC). That matches an all-time low for 30-year mortgages. The average for 30-year fixed-rate loans is nearly a full percentage point lower than it was a year ago.

The average rate on 15-year fixed-rate mortgages fell to 3.21 percent this week, the lowest since Freddie Mac has been keeping track.

One-year adjustable-rate mortgages averaged 2.81 percent, up from 2.80 percent the previous week.

Low interest rates are attracting existing homeowners. Applications to refinance a mortgage surged more than 9 percent last week to the highest level of the year, the Mortgage Bankers Association