Mortgage rates fall to new lows

Interest rates on fixed-rate home loans fell to fresh record lows this week as concerns about the economic recovery drove down Treasury bond yields.

For a 30-year fixed-rate loan, lenders reported that they were offering rates averaging 4.56%, according to a survey released Thursday by mortgage giant Freddie Mac. That was down from 4.57% last week and 5.2% a year ago.

On 15-year fixed mortgages, a popular option in the refinance market, rates averaged 4.03%, down from 4.06% last week and 4.68% a year ago.

For both loan terms, upfront fees quoted by the lenders averaged 0.7% of the amount borrowed.

The rates are the lowest since Freddie began tracking the 30-year fixed-rate mortgage in 1971 and the 15-year in 1991.

Worries about the economy have caused demand to surge for government securities, sending the yield on the 10-year Treasury note below 2.9% on Wednesday to a 15-month low. On Thursday, however, the 10-year yield rebounded to 2.93%.

The weekly survey by Freddie Mac asks lenders the rates they are offering on loans up to $417,000 for borrowers with solid credit, verifiable income and a down payment or home equity of at least 20%. Borrowers who shop around often can obtain lower rates.

scott.reckard@latimes.com