Mortgage Rates Tumble to Lowest Level Since 1994

Mortgage rates fell to the lowest level in at least 14 months this week as signs of restrained inflation kept bond interest rates stable, the Federal Home Loan Mortgage Corp. said Thursday.

Thirty-year fixed-rate mortgages averaged 7.37% in the week ended Nov. 10, down from 7.44% last week. This was the lowest rate since the week ended Feb. 25, 1994, when it averaged 7.32%.

Fifteen-year fixed-rate loans fell to 6.87%, also the lowest since the Feb. 25, 1994 week, from 6.97% last week.

One-year adjustable mortgages dipped slightly to 5.64% from 5.67%. The rate has not been this low since the week ended Sept. 23, 1994.

A year ago, 30-year mortgages averaged 9.19%, 15-year loans 8.67% and adjustable loans 6.01%.

The Labor Department said Thursday that the October producer price index fell 0.1% from September and rose only 2.1% from the year-ago month.

“This is another indication inflation is well under control so we saw mortgage interest rates ease a bit more this week,” said Frank Nothaft, Freddie Mac deputy chief economist. “These figures also abode very well for maintaining affordable rates for at least the foreseeable future.”

Freddie Mac said lenders charged an average of 1.8% in fees and points on 30- and 15-year loans, both unchanged from last week. Adjustable loan charges were also unchanged at 1.4%.