Fixed-Rate Mortgage Interest Falls to Lowest Rate Since ’73

Average interest charged on 30-year, fixed-rate mortgages dropped to its lowest level in more than 18 years, according to a national survey released Friday.

Economists believe rates may continue falling slightly after the new year begins, but they said rates probably will start to climb again in the spring as the economy emerges from its slump.

Fixed rates fell last week to an average of 8.35%, down from 8.49% the previous week, said the Federal Home Loan Mortgage Corp. It was the lowest since rates averaged 8.26% during the week ending Aug. 3, 1973.