WASHINGTON, Jan. 30 (Xinhua) -- The 30-year fixed-rate mortgage (FRM), the benchmark mortgage rate, fell to the second lowest in three years in the United States, the U.S. Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac, said on Thursday.
For the week ending Jan. 30, the 30-year FRM in the United States decreased to 3.51 percent from the previous week's 3.6 percent and was significantly lower than that in the same period one previous year ago which was 4.46 percent.
Freddie Mac noted that the 15-year FRM this week dropped to 3 percent from the previous week's 3.04 percent. It was also lower over the year and the figure for the same period a year ago was 3.89 percent.
"This week's mortgage rates were the second lowest in three years, supporting homebuyer demand and leading to higher refinancing activity," said Sam Khater, chief economist of Freddie Mac.
"Borrowers who take advantage of these low rates can improve their cash flow by lowering their monthly mortgage payments, giving them more money to spend or save," said Khater.
Freddie Mac is a corporation founded by U.S. Congress to promote the stability and affordability in the U.S. housing market by purchasing mortgages from banks and other loan makers. The corporation has been conducting weekly surveys on U.S. mortgage rate since April 1971.
