Freddie Mac: Typical 30-year mortgage rate back under 4%

The typical rate for a 30-year fixed mortgage has dropped below 4% again, according to a widely watched weekly report from home-loan giant Freddie Mac.

The McLean, Va., company said lenders were offering 30-year loans to solid borrowers at an average of 3.99%, down from 4.08% last week.

The 15-year fixed mortgage rate averaged 3.23%, down from 3.3%. Start rates on adjustable mortgages also fell.

The borrowers would have paid less than 1% of the loan amount in upfront fees to the lenders, with 20% down payments or equivalent home equity in the case of refinance loans, Freddie Mac said.

Frank Nothaft, Freddie Mac’s chief economist, said rates declined amid weaker homes sales and an S&P/Case Shiller survey showing home prices at their lowest level since December 2002.

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