Mortgages open new year lower

After rising to their highest levels since May, mortgage rates dropped slightly to open the new year, according to Freddie Mac.

A 30-year fixed-rate mortgage fell to 4.77%, down from the last week of 2010, when it climbed to 4.86%. Those rates are still off from a year ago, when a 30-year fixed-rate mortgage averaged 5.09%. The lower rates might help boost sales going into 2011.

“Mortgage rates began the new year a little lower this week and remained below those at the start of 2010, which should help aid the recovery in the housing market,” said Frank Nothaft, vice president and chief economist at Freddie Mac.