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Saturday, January 8, 2011

Summary box: mortgage rates fall this week (AP)

RATE to fall: Freddie Mac said the average rate on 30-year mortgage dropped to 4.77% to 4.86% the previous week. The average rate on the loan of 15 years slipped to 4.13% 4.20%.

STILL UP FROM LOWS: 30 year mortgage rates hit a minimum of 40 years from 4.17% in November. The rate of 15-year loan at 3.57% in November, the level lowest on records from 1991.

LOOK TO TREASURYS: mortgage rates tend to follow the performance on the score of 10-year Treasury, which has been rising since November. Investors have changed their money in stocks on expectations of economic growth and higher inflation and Treasurys.

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