Average long-term US mortgage rate falls to 6.42% this week

By MATT OTT
AP Business Writer

The average long-term U.S. mortgage fell for the second straight week, which combined with moderating home prices, could give the housing market a boost as the spring buying season begins. Mortgage buyer Freddie Mac reported Thursday that the average on the benchmark 30-year rate fell to 6.42% from 6.6% last week. The average rate a year ago was 4.42%. Even though financial markets remain jittery over recent bank collapses and the Fed raised its benchmark lending rate by another 25 basis points Wednesday, some economists think there may be light at the end of the tunnel for the slumping housing market.