U.S. mortgage rates declined this week, coming in at or near their all-time record lows, Freddie Mac reported today. The average 30-year fixed rate dropped to its record low of 3.49 percent, while the 15-year fixed rate hit a new record low of 2.77 percent. Said Frank Nothaft, vice president and chief economist, Freddie Mac:

“Following the Federal Reserve’s announcement of a new bond purchase plan, yields on mortgage-backed securities fell bringing average fixed mortgage rates to their all-time record lows which should aid in the ongoing housing recovery. New construction on one-family homes rebounded in August, rising by 5.5 percent to the fastest pace since April 2010. In addition, existing home sales increased by 7.8 percent in August to its strongest pace since May 2010.”