Mortgage rates lowest since May

McLEAN, Va. (Deseret News) — Average rates on 30-year mortgages slid to the lowest levels since May this week, Freddie Mac said.

The average rate for a 30-year fixed-rate mortgage was 5.12 percent, down from 5.29 percent last week, Freddie Mac said. At this time last year, the average rate for 30-year fixed-rate mortgages was 6.47 percent.

Low mortgage rates can spur refinance activity and make home buying more attractive. The last time rates for 30-year mortgages were this low was the week of May 28, when they were 4.91 percent.

Rates on 30-year mortgages fell to a record low of 4.78 percent in April, but then rose to 5.6 percent after yields on long-term government debt, which are closely tied to mortgage rates, climbed.

Frank Nothaft, Freddie Mac's chief economist, said treasury bond yields fell nearly a quarter of a percentage point over the week, bringing mortgage rates down.

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