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SAN FRANCISCO 

Freddie Mac FRE 0.90, +0.08, +9.8%) said Thursday the 30-year fixed-rate mortgage average fell to 5.53% -- its lowest since January -- with an average 0.7 point for the week ending Dec. 3. In the previous period, the average was 5.97%, and the year-ago average was 5.96%. The 30-year fixed-rate mortgage has not been this low since Jan. 24 when it was 5.48%. "After Federal Reserve actions to increase liquidity in the mortgage market, interest rates for fixed-rate mortgages took a dive," Frank Nothaft, Freddie Mac chief economist, said in a statement. "The recent plunge in rates contributed to the nearly 150% jump in conventional mortgage applications over the Thanksgiving week, led by almost a 300% surge in refinances, according to the Mortgage Bankers Association. Roughly three out of four mortgage applications were for refinance transactions, up from around half during the prior week."