Mortgage Rates Nearing Record Low

Washington, DC, May 27, 2010--U.S. mortgage rates continued to edge closer to a record low set in early December, according to a survey released on Thursday by Freddie Mac.

Lower interest rates on mortgages could buoy home loan refinancing activity, putting more cash into consumers' hands to funnel into the U.S. economy. It also makes homes more affordable during the most important period, the spring selling season.

Interest rates on U.S. 30-year fixed-rate mortgages averaged 4.78% for the week ended May 27, down from the previous week's 4.84%, according to the survey.

That is below the year-ago level of 4.91% and also the lowest the rate has been since the week ended Dec. 3, 2009 when it hit a record low of 4.71%.