Fixed mortgage rates end year just under 4 percent

Washington DC, United States (AHN) – Average fixed mortgage rates in the United States end 2011 near all-time record lows. The 30-year fixed home loan exits the year at 3.95 percent.

According to Freddie Mac, the rate for a 30-year fixed rate mortgage has stayed at or below 4 percent for nine consecutive weeks. It averaged above 5 percent just twice in 2011.

For the week ending Dec. 29, the 30-year fixed mortgage averaged 3.95 percent, up from 3.91 percent the prior week, and below 4.86 percent in the same period a year ago.

Rates on 15-year fixed mortgages averaged 3.24 percent, up from last week’s 3.21 percent, and below 4.20 percent a year ago.

Mortgage rates hit historic lows in 2011, but did little to help the ailing housing market, which is set to close out 2011 as the worst on record for new home sales.

Tight credit, stringent credit standards, and uncertainty about the economy kept many Americans from taking advantage of the never before seen, record low, mortgage rates.

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