Mortgage rate hits new low -- 3.91%

Mortgage rates fell in the week before Christmas after being... — Mortgage rates fell in the week before Christmas after being at record lows all year long. Credit: AP, 2007

By THE ASSOCIATED PRESSDecember 26, 2011

The average rate on the 30-year fixed mortgage fell to a record 3.91 percent in the week before Christmas, the third time this year rates have hit new lows.

Freddie Mac said Thursday the average on the 30-year home loan fell from 3.94 percent the previous week. The 3.91 percent rate is the lowest average for long-term fixed mortgages on records dating to the 1950s. The average on 15-year fixed mortgages was unchanged at 3.21 percent, also a record.

Low rates offer an opportunity to buy a home or refinance, but many people either can't take advantage of the rates or have already done so. This year is shaping up to be one of the worst ever for home sales.

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