US 30 year mortgage falls to record low

NEW YORK: US mortgage rates declined to record lows as the Federal Reserve pushed down borrowing costs by resuming purchases of mortgage-backed securities. The average rate for a 30-year fixed loan fell to 3.4% in the week ended on Thursday from 3.49% , McLean, Virginia-based Freddie Mac said in a statement. It was the lowest in data going back to 1971. The average 15-year rate dropped to 2.73%, also a record, from 2.77%.

The housing market has been showing signs of recovering as low interest rates draw in buyers who are competing for a limited supply of homes. Rates declined after the Fed's September 13 announcement that it would buy $40 billion of securities per month as part of measures to stimulate the economy.