Mortgage Rates Drop Again

The average 30 year mortgage rate has dropped this week to 4.71 from 4.78 last week this according to mortgage finance giant Freddie Mac on Thursday This is the lowest since 1971 since the agency had began compiling its weekly survey. Mortgage rates have been relatively low much of the year do to the Federal Reserves heavy buying of mortgage-backed securities. This 1.25 trillion dollar program was designed to push money into the housing market and is due to end this coming spring. The 15 year rate is down to 4.27 from last weeks 4.29. However lenders are now requiring higher credit standards than last year and larger down payments up to 20% on purchases. The new low rates have spawned an increase in loan applications. Thanksgiving week there was a 2.1% increase on a seasonally adjusted basis from a week earlier according to the Mortgage Bankers Association.