Rates fall below 5%

U.S. mortgage rates dipped below 5 percent again, a key level that may boost home loan demand, according to a closely watched mortgage survey on Thursday.

The lowest mortgage rates in decades and high affordability helped the hard-hit housing market find some footing last year after a three-year slump.

Attractive rates bode well for the housing market, which remains highly vulnerable to setbacks and heavily reliant on government intervention.

Interest rates on U.S. 30-year fixed-rate mortgages, the most widely used loan, averaged 4.97 percent for the week ended Feb. 11, down from the previous week’s 5.01 percent, according

to a survey released by Freddie Mac, the second-largest U.S. mortgage finance company.

That is below the year-ago level of 5.16 percent, but above the record low of 4.71 percent in early December. Freddie Mac started the survey in 1971.

“Interest rates on 30-year fixed-rate mortgages are below 5 percent for a third week this year, which helps a number of homeowners to refinance their existing housing debt” Frank Nothaft, Freddie Mac vice president and chief economist, said in a statement.

Mortgages

30 yr fixed 5.13% 5.26% 30 yr fixed jumbo 5.92% 6.02% 15 yr fixed 4.43% 4.66% 15 yr fixed jumbo 5.46% 5.64% 5/1 ARM 4.06% 3.59% 5/1 jumbo ARM 4.56% 3.77%

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Source: CNBC.com