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Mortgage Rates Fall to New Low of 3.34%

iStockphoto/Thinkstock(WASHINGTON) -- Average rates on fixed mortgages fell to new record lows.

Freddie Mac says the rate on a 30-year loan dropped to 3.34 percent. That’s down from the previous record low of 3.36 percent set on October 4, which was the lowest since long-term mortgages began in the 1950s.  Last year at this time, the 30-year loan averaged 4 percent.

The average rate on a 15-year fixed mortgage is down to 2.65 percent, from the previous record low of 2.66 percent set October 18.  A year ago at this time, the 15-year loan averaged 3.31 percent.

Mortgage rates are expected to remain around these lows through the end of this year and well into the beginning of 2013.

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ABC News Radio