30-Year Mortgage Rates Fall to Record Low 5.01%

Fed buys $10.2B in agency mortgage bonds
By Nick McMaster,  Newser Staff
Posted Jan 8, 2009 5:08 PM CST
Freddie Mac's corporate offices are seen in McLean, Va.   (AP Photo)
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(Newser) – Interest rates on 30-year fixed mortgages fell to a record low 5.01% this week, Bloomberg reports. The drop—the 10th weekly fall in a row—comes as the Federal Reserve purchased $10.2 billion of mortgage-backed securities from Fannie Mae, Freddie Mac, and Ginnie Mae as part of a program to stimulate the mortgage market and reduce rates. Fixed rates for 15-year mortgages fell to 4.62%.