Mortgage Rate Goes Below 4%

As more and more signs of a slowing global economy drove investors to the safety of government bonds, the US mortgage rates plunged, sending borrowing costs for 30-year loans below 4% for the first time in 16 months, as signs of a slowing global economy drove investors to the safety of government bonds.

At 3.97%, the 30-year rate is down from 4.12% last week and 4.53% at the start of the year and at its lowest point since the week of June 20, 2013, when it was 3.93%, Freddie Mac said in a statement today. The average 15-year rate fell to 3.18% from 3.3%, the McLean, Virginia-based mortgage-finance company reported.

The average fee for a 30-year mortgage was unchanged from last week at 0.5 point. The fee for a 15-year mortgage also remained at 0.5 point.

The average rate on a five-year adjustable-rate mortgage dropped to 2.92% from 3.05%. The fee was steady at 0.5 point.

For a one-year ARM, the average rate fell to 2.38% from 2.42%. The fee held at 0.4 point.