The 30-year fixed-rate mortgage (FRM) averaged 5.10 per cent for the week ending December 31, down from last week when it averaged 5.14 per cent, according to a statement released on Wednesday by Freddie Mac.
Last year at this time, the 30-year FRM averaged 6.07 per cent. The 30-year FRM has not been lower since Freddie Mac started the Primary Mortgage Market Survey in 1971.
"Interest rates for 30-year fixed-rate mortgages fell for the ninth straight week and represented a third consecutive all time record low since Freddie Mac's survey began in April 1971," said Frank Nothaft, Freddie Mac vice President and Chief Economist.
Lower rates and falling house prices are also making homeownership more affordable to potential homebuyers. Single-family home prices fell 18 per cent over the 12-month period ending in October, according to the S&P/Case-Shiller 20-city composite index.
Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the US residential mortgage markets.