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Friday, October 15 2010 - By Becky Harris
Federal Reserve chairman Ben Bernanke hinted that upcoming Fed actions would make mortgage rates fall lower.
Freddie Mac says mortgage interest rates have reached a new record for the third week in a row, and haven't been this low in nearly 60 years, making buying a home more affordable for many moving families.

According to the company's weekly mortgage survey, the average interest rate for a 30-year fixed-rate loan dropped from 4.27 percent last week to 4.19 percent, again setting a new low for Freddie Mac. The company says that according to Federal Housing Administration data - which goes back to 1948 - that last time rates were this low was 1951.

Interest rates for other loan types also followed similar trends. The average rate for a 15-year FRM dropped from 3.72 percent to 3.62 percent - also a record low - while five-year adjustable-rate mortgages stayed level at 3.47 percent, remaining at the record low that was set the week before.

But there are also suggestions that rates may drop even further in the coming weeks. During a speech today, Federal Reserve chairman Ben Bernanke suggested that the agency would work to make interest rates even lower to help reduce unemployment, which he said was set to "decline only slowly" next year.
 

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