Mortgage rates sink; 30-year averages 3.92%, Freddie Mac says

The lowest mortgage rates of the year sank a bit lower this week, with Freddie Mac reporting that lenders were offering 30-year fixed loans at an average of 3.92%, down from 3.97% a week ago.

The average rate for a 15-year loan also ratcheted down, from 3.18% to 3.1%, according to Freddie Mac’s weekly survey, offering borrowers an inexpensive way to pay their mortgages faster.

With inflation running below the Federal Reserve’s target of 2% and consumer prices up just 0.1% in September, investors are accepting rock-bottom returns on mortgage bonds guaranteed by Freddie Mac and Fannie Mae, the housing finance giants.

The average rate on the 30-year fixed mortgage was at its lowest point since June 2013, Freddie Mac said in its weekly report, issued Thursday. A year ago at this time, borrowers were offering 30-year loans at an average of 4.13%.

Freddie Mac asks lenders every Monday through Wednesday about the terms they are offering to low-risk borrowers who pay minimal points and fees to lenders -- half of 1% of the loan amount in the latest survey.

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