30-year loan rates fall below 5 percent

<p>Rates for 30-year home loans dipped below 5 percent this week after rising for three straight weeks.</p><p>The average rate fell to 4.98 percent from 5.03 percent a week earlier, mortgage company Freddie Mac said Thursday.</p><p>Rates had hovered below 5 percent for nearly a month until inching upward two weeks ago. They hit a record low of 4.78 percent in the spring, but are still attractive for people looking to buy a home or refinance.</p><p>The Federal Reserve has pumped $1.25 trillion into mortgage-backed securities in an effort to lower rates on mortgages and loosen credit. Rates on 30-year mortgages traditionally track yields on long-term government debt.</p><p>That, plus a federal tax credit of up to $8,000 for first-time homebuyers, has helped boost the ailing housing market.</p>