U.S. mortgage rates have declined this week to less than 4 percent, the lowest level in over 20 months, data released by mortgage-finance company Freddie Mac (FMCC.OB) showed.
The average rate for a 30-year fixed mortgage was 3.59 percent as of February 5, compared to 3.66 percent in the previous week.
The average 15-year rate dropped to 2.92 percent from 2.98 percent. Both the rates are the lowest since May 2013.
In the year-ago period, the average 30-year mortgage rate was 4.23 percent and the 15-year mortgage rate was at 3.33 percent.
The fall in home loan rates is encouraging more people to apply for loans. Earlier this week, Freddie Mac said borrowers who refinanced in 2014 will save on net approximately $5 billion in interest over the next 12 months.
"...borrowers are continuing to take advantage of near record low mortgage rates to lower their monthly payments, shorten their loan terms and overwhelmingly choosing the safety of long-term fixed-rate mortgages as they closed out the year," a statement from the company said.
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Business News
December 19, 2025 15:10 ET U.S. inflation data and interest rate decisions by major central banks were the highlights of this busy week for economics news flow. Employment data and survey results on the housing markets also gained attention in the U.S. In Europe, the European Central Bank and Bank of England announced their policy decisions and macroeconomic projections.