NEW YORK: US mortgage rates dropped to the lowest level in more than a year and a half as falling oil prices and concerns about the strength of the euro drove investors to the safety of the US government bonds that guide borrowing costs.
Freddie Mac said the average rate for a 30 year fixed mortgage tumbled to 3.73 per cent from 3.87 per cent last week.
The McLean, Virginia based mortgage finance company said the average 15 year rate declined to 3.05 per cent from 3.15 per cent.
Keith Gumbinger, vice president of HSH.com said the dip is sizable. Troubles beyond our borders have been, over the last few years, the friend of the American homebuyer.